Impact of infrastructure on Bangalore’s real estate


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Infrastructure plays a vital role in boosting a city's real estate market. Bangalore has witnessed a slew of infrastructure projects in the past which have contributed towards its growth. Here's how the city has been impacted by development of infra:  

A cohesive physical and social infrastructure which includes neighbourhood, transportation, utilities and telecommunications significantly influences real estate investment and development decisions across the globe. A robust infrastructure endures services like health, safety, education and recreation.

Residential and commercial properties located close to transportation facilities have been commonly observed to command a premium price over the properties located far off. The property values are determined as per the upcoming infrastructure projects, thereby, leading to the development of residential or commercial hubs.

Impact of policy changes

Due to a steady economic and income growth, the real estate industry has witnessed tremendous growth over the last decade. Government policies were providing the right stimulus to the growth. Though these policies improved the overall housing situation, there were elements which proved to be detrimental to the business.

Abrupt changes in Government policies has serious consequences on both social and physical infrastructure. The case in point is the recent National Green Tribunal (NGT) where the developers were asked to undertake construction 75 meters away from any lake in Bangalore. The ruling has greatly impacted the existing projects in terms of architecture planning and financial viability.

Noteworthy examples and its effect

A far off area like Kanakapura, located in the south of Bangalore has become an attractive investment destination due to rapid infrastructure development, thereby witnessing a swift urbanisation.

With easy accessibility to NICE Ring Road, proposed metro and connectivity to peripheral ring road are other reasons that have further bolstered investments in Kanakapura. Additionally, there are plans to widen the road to decongest traffic with an added benefit of Cauvery water supply. There is also an on-going discussion to develop an amusement park in Kanakapura with further potential to increase tourism and trigger development.

With the surge of real estate properties on Kanakapura Road, the resultant effect can also be seen in terms of the establishment of hospitals in the area, the increase in the number of restaurants and hotels, and the rising number of schools that have been set up in the recent times.

Government’s Initiatives

To ensure a steady growth of real estate industry, it is vital that the government heavily invests in urban infrastructure. As per news reports, the Bangalore Government last year allocated Rs 1000 crore under the Nagarothana scheme towards the improvement of infrastructure and solid waste management plants.

Furthermore, the Union government has approved the construction of 334km expressway between Bengaluru-Chennai corridors.

These initiatives and others, if applied rightly, are estimated to bring India’s infrastructure at par with the global standards in the coming years. Over and above investments, it is recommended that the state government, along with the municipal government and industrialists come together to establish a framework and develop long-term economic strategies viable for the respective cities. Such a move will warrant the development of required infrastructure.

Real estate has high potential if equipped with proper tools for modern infrastructure. Home buyers looking for a luxurious living are always on the lookout for developed infrastructure in close proximity to their desired residential property. A developed neighbourhood assures the buyer an escalation in the evaluation of a property at a rate higher than the market standards.

With the existence of greater and better connectivity and infrastructural development, developers will come forward to transform the under developed area into a habitable zone. 

Disclaimer: The views expressed in the article are solely of the author and may not represent's opinions on the subject. does not take responsibility for any actions taken based on the information shared by the author.

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