Property prices in Hosur, Tamil Nadu’s emerging industrial hub, are expected to rise by 25 to 40 per cent over the next two to three years as the town prepares for its upcoming airport. The Rs 190 billion airport project is designed to handle 30 million passengers annually. Speculative buying near Berigai and Bagalur in Shoolagiri taluk, Krishnagiri district, has already pushed land prices to between Rs 1,500 and Rs 3,500 per square foot.
Dr Prashant Thakur, Executive Director and Head of Research & Advisory at ANAROCK Group, said property values across Krishnagiri district are likely to appreciate significantly, with growth varying by location and project type. He noted that the airport will strengthen connectivity along Bengaluru’s south-eastern corridor and boost demand for industrial and commercial real estate. The region’s proximity to Electronic City and the Karnataka–Tamil Nadu border makes it well-positioned for integrated townships, logistics hubs and warehousing facilities.
Bala Ramajayam, Founder and Managing Director of G Square, added that enquiries from investors and professionals working in Bengaluru’s Electronic City have surged following the announcement. Buyers view the airport as a major connectivity advantage with strong potential for high-yield capital appreciation.
According to Ramajayam, the airport is expected to attract between Rs 800 billion and Rs 1.05 trillion in sectoral investments and generate 365,000 to 455,000 jobs over the next decade, establishing Hosur as a major industrial and aviation hub. Manufacturing units have begun planning warehouse and logistics facilities, leveraging the improved access to global markets. The town’s real estate prices have already tripled in some pockets.
Rajesh Gurumurthy, Senior Director – Strategic Consulting and Risk Advisory at JLL Chennai, confirmed that areas such as Bagalur have seen prices rise up to three times, driven by logistics companies rapidly setting up operations.
Thakur also highlighted sustained interest from NRI investors and Bengaluru-based IT professionals for RERA-approved plots and storage spaces. Last month, KSH INFRA and WSB Real Estate Partners announced a Rs 4.5 billion investment to develop an industrial park in Hosur.
ANAROCK projects that real estate values in corridors such as Attibele–Bagalur could rise by up to 40 per cent. Plotted developments may see increases of 80 to 110 per cent over eight to ten years, while apartment prices in Electronic City and Sarjapur could grow by 25 to 40 per cent over the next five to seven years. Premium villas may appreciate by 30 to 50 per cent. Notably, Hosur town lies just 25 km from both Electronic City and Sarjapur.
Experts emphasised the need for improved road and rail infrastructure to fully leverage the heightened demand triggered by the airport project. Although the Bangalore Metro Rail Corporation Limited (BMRCL) recently stated that a direct metro link to Hosur is not feasible, Gurumurthy stressed that both state governments must collaborate to enhance connectivity between Bengaluru and Hosur. He also underscored the urgency of expediting repair work on the national highway between Kancheepuram and Vellore.