The Bangalore-Chennai Infrastructure Corridor (BCIC) is a flagship project of India’s National Industrial Corridor Development Programme that describes an ambitious undertaking of industrial development at the same time as improvement in transportation and connectivity. As the project is coming closer to the end, the impact can be felt especially around the highway in one particular sector- real estate. This article discusses how BCIC is controlling the change taking place in parts of Karnataka, Tamil Nadu, and Andhra Pradesh, which are all connected by this corridor. Let’s understand how such infrastructural projects enable growth in residential and commercial properties.
What is the Bangalore-Chennai Infrastructure Corridor (BCIC)?
As the name indicates, the massive 560 km project connects Bangalore (aka Bengaluru) in Karnataka to Chennai in Tamil Nadu via Sriperumbudur, Hoskote, Kolar, Ranipet, Vellore, and many other developing industrial cities (like Sri City). It is a trifecta project as the corridor also passes through Andhra Pradesh. The corridor plans to establish Special Investment Nodes (SINs) and Industrial Smart Cities, covering the manufacturing and logistics and warehousing, IT, and ITeS sectors. The authorities plan to connect each of the main urban centres with “logistics hubs” through highways and high-speed rail, with a dedicated freight corridor.
Affected Areas and Real Estate Condition
1. Hoskote (Bangalore Rural): This city is developing rapidly on the outskirts of Bengaluru to attract both industrial and residential developers.. The demand for both commercial spaces as well as residential has surged ever since the corridor was announced, turning the once a quite suburb into a hot real estate destination. Impact:
- Rise in residential layouts and villa projects
- Boost in warehouse and logistics park investments
- Infrastructure upgrades such as better roads and drainage
2. Kolar (Karnataka): The once known gold mine city of India is now going through an urban makeover to turn into an industrial and logistics hub. The strategic location to NH-75 has benefited the city most, especially in the following ways-
- Affordable land prices are attracting industrial and commercial investments
- Growth in mid-income and rental housing
- Emergence of logistics clusters
3. Sriperumbudur (Tamil Nadu): Sriperumbudur is a city that has always been in the hot spot of industrial growth in Tamil Nadu, with companies like Hyundai, Samsung and Nokia as manufacturing clients in the city. Now that the corridor is being developed, it will just get better with strengthened logistics and better last mile connectivity to Chennai Port and Chennai City Limits.Impact:
- Increased demand for rental housing for factory workers
- IT/ITeS office spaces to support ancillary industries
- Surge in demand for co-living spaces and student housing due to educational institutions
4. Vellore & Ranipet (Tamil Nadu): The belt that was known for its leather and auto components is now going to benefit from its connectivity to two major cities of the country, which would basically increase the demand on especially commercial spaces in this region. Impact:
- Rising interest in commercial land parcels
- Inflow of institutional investors and REITs
- Price appreciation in both residential and industrial land
Also read: Mumbai 2.0: Upcoming Infrastructure Projects That Are Transforming Real Estate
Sectors to Benefit the Most
- Manufacturing and Warehousing: Industrial land demand is on the rise in corridor-aligned areas. Industrial parks, logistics hubs, and warehousing clusters are seeing record interest, especially in Kolar, Hoskote, and Sriperumbudur.
- IT/ITeS and Startups: As connectivity improves, peripheral towns are becoming attractive for IT companies and startups due to lower rental costs. Secondary IT clusters are expected to rise in areas like Vellore and Hoskote.
- Residential Real Estate: As the job opportunities are on the rise, this is also resulting in an increase in demand for houses, cause of which developers are launching projects even in tier 2 cities at much affordable prices, to meet the needs of migrant workers and students.
- Retail and Hospitality: As population inflow increases and disposable income rises, retail chains, malls, hotels, and restaurants are making inroads. Areas near industrial clusters are seeing a rise in commercial retail formats.
Travel Time Reduction and Connectivity Gains
- The BCIC is playing a major role in reducing the travel time among major cities and industrial nodes.
- Bengaluru to Chennai: Travel time can be reduced by 3 to 4 hours on roadways, while high speed trains are currently dependent on 4 hour travel time.
- Dedicated Freight Corridor: This freight corridor reduces the time it takes to move cargo, which can lead to greater industrial efficiencies and attract more investment.
- One simple improvement is that the Peripheral Ring Roads and Bypasses associated with Bengaluru and Chennai are successfully improving traffic in the core and strengthening connectivity to suburban cities.
- With better connectivity, it would take less time to transport goods, which would result in cheaper transportation and greater economic growth. And all of this would cause the boom in real estate in these areas.
Future Outlook
The BCIC is one of the mega projects India is going to witness in the coming years. This corridor will change the complete landscape of the region and will see industries thriving, as multiple state governments are pushing for integration and faster approvals; the land prices in the corridor have already witnessed an appreciation in value. Investors are keeping a close eye on the cities mentioned above to gain long-term returns. Here, we have also come to see joint ventures among developers and landowners who are offering integrated industrial townships. Additionally, with PM Gati Shakti and Make in India initiatives aligned to boost domestic production, the real estate sector is poised for sustained growth along the BCIC.
Written by Adithya Menon
