Synopsis: The Bengaluru–Chennai Expressway project is becoming a pivotal economic and infrastructural link between Karnataka, Andhra Pradesh, and Tamil Nadu. This article will discuss the areas experiencing real estate, logistics and industrial growth around the expressway.
The Bengaluru–Chennai Expressway is one of the biggest greenfield infrastructure initiatives in Karnataka, Andhra Pradesh, and Tamil Nadu, which links Bengaluru and Chennai. The 260+ km corridor will shorten travel times and increase in industrial, logistics and real estate development in multiple emerging regions. The National Highway Authority of India is developing this 258 km-long stretch. It is a four-lane expressway with a budget of Rs 18,000 crore.
The expressway is in partial operation now, but these phases of construction are required because of the extent of building a new greenfield route. Though the timeline is longer, the corridor has a massive long-term growth potential, with several areas already experiencing an uptick in land demand, infrastructure enhancements and developer interest.
Karnataka’s Role in the Bengaluru–Chennai Expressway
The Bengaluru–Chennai Expressway is likely to have the first major impact in Karnataka, as it starts from East Bengaluru, which is among the fastest growing infrastructure zones in the city. The current stretch of operational Hoskote-KGF is already impacting land prices, warehousing needs, and housing development in the eastern part of Bengaluru and adjacent industrial zones.
The Karnataka section is also very close to other mega projects such as the Satellite Town Ring Road (STRR), upgradation of Old Madras Road, expansion of Whitefield, and upcoming Metro connectivity. As such, places that were once deemed as the suburbs are now being identified as investment corridors.
Areas being affected in Karnataka
Hoskote
Hoskote is the largest beneficiary of the expressway as it is the entry point of the Karnataka stretch of the expressway. In a few projects, the price of the property has gone up from ₹3,000–₹4,000 per sq.ft a few years back to ₹6,500–₹7,500 per sq.ft as of now. The area will experience 15-30% more to appreciate when fully operational.
It is approximately 27 km away from the Bengaluru CBD and is well connected with Whitefield, KR Puram and airport corridor. There is a robust appetite for warehousing and logistics, plotted and industrial projects. The area is also getting connected with STRR which are facilitating the movement of freight towards Chennai at a much faster pace. The most striking selling point for Hoskote is the presence of large land parcels at a much lesser price than those in Whitefield or Sarjapur, which are appealing to the developers and long-term investors.
Budigere Cross
The strategic location of Budigere Cross between the Whitefield, Old Madras Road and the Airport corridor is making it an upscale residential hotspot. Nearly 20-35% of the region’s apartment prices have been reportedly increasing in recent years. The residential prices in many projects vary from ₹7000 to ₹10000 per sqft based on connectivity and reputation of the builder. The area offers better connectivity towards Whitefield IT corridor, KR Puram and Hoskote expressway junctions. Rental and end-user house demand is ramping up due to increased demands from IT professionals. It’s an ideal place for both home buyers and investors, as it’s situated between East Bengaluru’s IT belt and the expressway corridor.
KR Puram & Old Madras Road Belt
The strong commercial and residential growth at KR Puram and the Old Madras Road stretch is a result of the connectivity improvement brought by the expressway. The metro expansion and infrastructure improvement have led to nearly 25–40% increase in property prices over the past few years across this belt. The price of residential units in the premium projects have been revised to ₹ 8,000 to ₹ 13,000 per sq. ft. The corridor directly connects KR Puram to Hoskote and further towards Chennai.
Residential and office demand is rising due to metro connectivity, railway access and proximity to IT corridors.The proximity to IT corridors, railway access and metro connectivity are driving up demand for residential and office spaces.The area is increasingly playing a vital role in bridging between central Bengaluru and the new eastern growth corridor.
Malur
The increasing investors’ interest in Malur is primarily due to the rise in industrialization and the land being comparatively cheap. The expressway development has led to a 15-25% increase in land prices in some areas. Logistics and manufacturing firms are increasingly buying industrial plots and warehouses. Malur gets benefitted from connectivity with Hoskote, Narasapura Industrial Area and Kolar. The price of land is still significantly lower than within city limits of Bengaluru and thus is an ideal option for long-term land banking investments. The area is slowly becoming an industrial and warehousing hub of East Bengaluru.
Kolar Belt
The expressway is intended to boost the industrial development, logistics facilities relocation and future township development of Kolar. With complete construction, Kolar’s connectivity to Andhra Pradesh and Chennai will see a remarkable enhancement. The area is gaining traction for plotted developments, logistics centers, and manufacturing support industries are gaining interest. Compared to Bengaluru, the entry level is lower which is favourable for long-term investors in Bengaluru considering future appreciation. Kolar is slowly shifting from an agriculture-based economy to an infrastructure-based urban development with the improved connectivity and industrial movement.
Andhra Pradesh’s role in Bengaluru – Chennai Expressway
Nearly 85 km of the Bengaluru-Chennai Expressway is located in Andhra Pradesh. The AP section will experience a rise in significant logistics, warehousing and industrial investment belt in the coming decade due to its strategic location between Karnataka and Tamil Nadu. As opposed to the growth pattern in Bengaluru, which is industrialized with respect to industrial land, commercial plots facing the highways, logistics parks, warehouses, etc, are showing better demand in Andhra Pradesh. The land prices here are also still considerably lower than the outskirts of Bengaluru and it is already seen that people are investing in the area even before the expressway is completed.
The AP stretch is also crucial linking the freight movement towards Chennai ports and connectivity to industrial hubs in the district of Chittoor. Land prices in several corridor regions are reportedly beginning to increase steadily since the project was announced.
Areas being affected in AP
Chittoor
Chittoor is fast becoming one of the key logistic and industrial centres in the expressway stretch. Nearly 20–35% price increases are reportedly seen in the prices of land in major expressway connected pockets since the increase in expressway developments. The price in developing areas of the city for these residential plots are in the range of ₹2,500 to ₹5,000 per sq.ft at present, depending upon the area and access to the highways.
The district has several active markets with an average residential plot value of ₹36–47 lakh. With direct connectivity to Bengaluru, Chennai, Tirupati and industrial belts in Tamil Nadu, the demand for industrial/commercial land is increasing in Chittoor. Closeness to the Karnataka border makes it a good industrial transit hub as freight can reach faster to Bengaluru and Chennai.
Palamaner
The direct expressway link is making Palamaner an increasingly investment-oriented place. Over the past few years, the property and land values in several neighbouring areas have risen by almost 15–25%. Currently, plot rates in Palamaner are at a rate of approximately ₹3,000 – ₹3,100 per sq.ft on active layouts and developing corridors. Prices for agricultural land vary from ₹25 lakh to ₹55 lakh per acre in the vicinity of roads and locations. There is increased demand on highway front commercial plots due to anticipated increase in freight and passenger traffic.
Madanapalle Region
Madanapalle is likely to benefit indirectly due to the development of regional connectivity and movement of freight. Recent appreciation of land value around connected road corridors has been more gradual following an increase in expressway activity in those areas. Commercial and agricultural land rates are lower than Chittoor and hence it is suitable for further industrial growth.
A few agricultural pockets in the broader Chittoor district expect to see land prices of ₹10 lakh to ₹35 lakh per acre based on the ease of road access and the development activity in the area.
Tamil Nadu’s contribution to Bengaluru–Chennai Expressway
The Bengaluru–Chennai Expressway is likely to have the most significant effect on industries and commerce in Tamil Nadu as it is bound to link directly with the large manufacturing hub of the city. The Tamilnadu part is almost 106km long and connects to some important industrial centres such as Sriperumbudur, Oragadam, Ranipet, Walajahpet, and Kanchipuram.
Automobile, electronics and manufacturing companies have already made a strong presence in the region and the expressway will be expected to further drive industrial investments, warehousing needs and residential development. The Tamil Nadu section is also well linked with upcoming infrastructure projects such as Chennai Peripheral Ring Road, Parandur Airport and Industrial Corridors.
Areas being affected in Tamil Nadu
Sriperumbudur
Sriperumbudur is also one of the biggest real estate gainers due to the expressway’s role as the gateway to Chennai end. The expressway and Sunguvarchatirapatty Airport Development have reportedly caused property values to rise by almost 30-50% in certain areas of Sriperumbudur and its vicinity.
Currently, the price of residential plots in the area is approximately ₹2,000–₹4,000 per sq.ft, influenced by their proximity to highways and the type of project. The area is also linked to NH-48 in Chennai city, Orragadam industrial belt and upcoming infrastructure of the airport. Sriperumbudur has already got some big manufacturing giants such as Hyundai, electronics firms and industrial suppliers; it is one of the best job creators in Tamil Nadu. The expressway should also help to spice up township building, warehousing and rentals throughout the area.
Oragadam
Oragadam is one of the growing industrial and real estate corridors in Chennai due to the presence of the automobile and manufacturing industry. In recent years the price of Residential/Plotted development in the Oragadam belt has increased by almost 20-40%.
Plot rates in some projects are currently in the range of ₹1,300-₹3,000 per sq.ft with respect to connectivity and availability of infrastructure. The area is linked to Sriperumbudur, GST Road, Outer Ring Road and the Bengaluru–Chennai Expressway.
Ranipet & Walajahpet Belt
Major logistics and manufacturing centers are likely to occur along the corridor at Ranipet and Walajahpet. The region is home to increased industrial land requirements, as it serves as the link between freight corridors to Chennai from Bengaluru.
The price of land in the neighbouring industrial areas has been reported to have appreciated by almost 15–25% in the wake of the increased speed of the expressway construction. The area is well connected to the industrial clusters and industrial parks of SIPCOT. The Walajahpet stretch is significant as it serves as a significant junction between Chennai highways and the expressway system.
Kanchipuram
Kanchipuram will mostly be benefited from connectivity, tourists and growth of industries due to spill overs. Expectations of infrastructure developments are driving plot and land investment in nearby areas with highways. Around the corridor, several plotted areas are seeing the investors’ inflow due to relatively lower land rates in comparison to Chennai.
The region is connected towards the influence zone of Sriperumbudur, Walajahpet, Chennai and Parandur Airport. Kanchipuram is slowly becoming a future satellite development corridor for Chennai with the improvement of road infrastructure and the growth of industries.
Chennai Peripheral Growth Impact
The expressway is also likely to drive growth in the outer areas of Chennai by easing congestion and enhancing freight delivery efficiency. The ₹12,300 crore investment in the Chennai Peripheral Ring Road project is significant enough to have a tremendous impact on regional connectivity. The new 6-lane elevated corridor being planned between Poonamallee and Maduravoyal will also be supported by investments of almost ₹1250 crore to facilitate incoming expressway traffic.
The demand for plotted development, logistics parks and affordable housing is expected to surge in the western outskirts of Chennai, due to higher mobility. Tamil Nadu is expected to experience maximum commercial and rental demand along the Bengaluru-Chennai route due to the industrial growth, development of airport and expressway connectivity.
Conclusion
The Bengaluru – Chennai Expressway will be a prime growth corridor in the states of Karnataka, Andhra Pradesh and Tamil Nadu. The project has already resulted in increased land values, industrial development, warehousing needs, and new real estate development in several developing areas well before it’s completed. Real investors looking for long term growth should consider investing in these areas based on their conditions.
Written by Boyapati Sai Jasmitha
