Bengaluru real estate: Real estate prices soar in Devanahalli as Foxconn's iPhone plant takes shape

Hindustan Times

24-05-2025

With Foxconn's iPhone manufacturing facility in Devanahalli, Bengaluru, nearing completion, the city's northern corridor is witnessing a surge in real estate activity. According to real estate experts, iPhone production is expected to begin by early June, sparking increased demand for residential and commercial properties in the area and a rise in land prices. The growth is being driven by expanding job opportunities and infrastructure investments.
Sharing the update on X (formerly Twitter), Karnataka Industries Minister M.B. Patil said, 'Apple CEO Tim Cook has confirmed that, in the June quarter, most iPhones sold in the United States will be manufactured in India.'
As part of its expansion plan, Foxconn is also building worker dormitories on its 300-acre iPhone manufacturing campus in Devanahalli. According to The Economic Times, the facility will house around 30,000 workers, making it the largest of its kind in India. Construction is progressing swiftly and is expected to be completed by year-end.
Real estate experts note that Foxconn's upcoming facility is already fueling demand for residential and commercial properties in Devanahalli, driven by rising employment opportunities and infrastructure development.
'There has been significant land price appreciation in Devanahalli. Since Foxconn's entry, property rates have surged by at least 30–35%,' Ashish Sharma, City Head – Bengaluru at ANAROCK Group, told HT.com.
Also Read: Bengaluru real estate: Is Devanahalli the IT capital's Gurugram in the making?
'Developers are increasingly using phrases like 'just 10 minutes from Foxconn' to market their projects,' said Manjesh Rao, chief real estate officer at BrokerinBlue. 'This strategy is proving effective in drawing investors eager to tap into the rapidly growing ecosystem around the facility.'
Devanahalli is emerging as a prime investment hotspot, driven by major infrastructure projects such as Kempegowda International Airport, the Satellite Town Ring Road (STRR), and upcoming IT and business parks. So rapid is its transformation that local brokers now refer to it as 'the poster boy of North Bengaluru.'
According to ANAROCK data, land prices in the area have surged by 30%–40% in the past year alone, doubled over the last three years, and increased by as much as 150%–175% over five years.
'Infrastructure developments like the airport, STRR, and planned IT parks are major growth drivers,' said Sharma. 'Devanahalli's proximity to the airport, the upcoming Phase 2 of Namma Metro, and the presence of SEZs and the BIAL IT Investment Region make it especially appealing to professionals seeking nearby housing.'
Also Read: Devanahalli metro expansion: Will it fuel demand for real estate and ease infrastructure challenges in North Bengaluru?
Plotted developments in Devanahalli are largely concentrated along the STRR, a 21-kilometre corridor stretching from Hoskote to the Tamil Nadu border. This corridor is also home to the upcoming Foxconn facility, said Rao.
Plots along the STRR are currently priced between ₹5,500–6,000 per sq. ft. For Grade A projects, rates go up to ₹7,500–8,000 per sq. ft.,' Rao noted. 'However, inventory is limited, and due to strong demand and rapid development, land prices along this corridor are appreciating at an annual rate of 20%–28%.'
In contrast, the IVC Road (Inter-Village Connectivity Road) in Devanahalli is home to most of the luxury villa developments. "These are premium offerings, with prices starting at ₹5 crore for a 2,400 sq. ft. villa. Newer launches include White Lotus, a boutique project with villas starting at ₹6 crore, and luxury developments like Sobha Oakshire and Sobha Lifestyle, both priced above ₹5 crore," said Rao.
Prices have seen a sharp rise in the past one to two years, said Kiran Kumar, vice president of Hanu Reddy Realty. He pointed out that a villa in Brigade Orchards that was priced at ₹2.5–3 crore a year ago is now being sold for ₹5 crore. Similarly, a plotted development project which was priced at ₹2,200–2,500 per sq. ft. in 2022, is now selling for over ₹8,000 per sq. ft.
As for apartments, brokers say they are mostly located in Devanahalli's core residential zones. "The entry-level price for a 2BHK apartment in Devanahalli is around ₹80 lakh, while a 3BHK in a premium development can go up to ₹1–2 crore," said Kumar.
Also Read: Bengaluru real estate: Where can you buy plots for less than ₹1 crore in north Bengaluru?
Data from NoBroker showed that average rent inflation in Bengaluru from 2024 to 2025 has been about 10%. But in the North Bangalore Devanahalli region, it is 30%.
"A 2BHK that was previously rented for ₹12,000–13,000 now commands around ₹25,000 in gated communities. Residential rental yields currently range between 1% and 3%," Kumar said.
Villas are also performing well in the rental market, with entry-level rentals starting at ₹1.5 lakh per month, while high-end properties like Sobha Lifestyle can fetch up to ₹2.5 lakh per month. These premium homes are typically rented by expats, CXOs, and senior professionals, although brokers said there is also a noticeable presence of blue-collar workers in some parts of Devanahalli, said brokers.
"The share of project launches in North Bengaluru has increased from 23% in 2023 to 31% in 2024. In fact, apartment listings on our platform for Devanahalli have increased by 30% this year," said Saurabh Garg, co-founder and chief business officer, NoBroker.
Due to aviation safety concerns near Kempegowda International Airport, Devanahalli is subject to building height restrictions.
'Developers in the area are typically allowed to build up to seven floors, making the region more suitable for plotted and villa developments. One key limitation, however, is the lack of multi-speciality hospitals—only a few smaller healthcare facilities are currently available,' Kumar said. 'That said, most upcoming Grade A townships in the region plan to include hospitals within their developments.'
On the education front, the area is well-served with institutions like GITAM University, Harrow International School, Amity University, and Chanakya University operating nearby.