Final nod for Hosur airport could push land prices up 40%, reshape EV, warehousing and housing growth
Since the site confirmation, brokers have reported a visible pickup in speculative activity, particularly around Sarjapur, Bagalur, Hosur and Attibele.
Hosur, long seen as Bengaluru’s industrial cousin, is set for a major transformation with Tamil Nadu finalising the site for a greenfield airport between Berigai and Bagalur in Krishnagiri district. Just 8 km from Attibele and located along the STRR corridor, the project is expected to unlock a new wave of growth in real estate, logistics and residential demand, leveraging Hosur’s strong base in EV and electronics manufacturing.
Property values have already surged in anticipation. Land prices around Bagalur, Sarjapur and Attibele have seen a sharp uptick, with speculative buying on the rise. According to ANAROCK, current prices at Berigai, Bagalur and Attibele range between ₹1,500 and ₹3,500 per sq. ft. and could rise 25–40 per cent over the next two to three years once the project receives formal clearance.
Strategically placed at the intersection of Tamil Nadu, Karnataka and Andhra Pradesh, Hosur could also emerge as a logistics and warehousing corridor, with land values appreciating along industrial estates and national highway stretches, said Sanjay Chugh, City Head – Chennai, ANAROCK Group.
Taking bold bets
Developers and investors are already sensing the momentum. “Even before this announcement, when the airport was only at a speculation stage, there was strong interest in Sarjapur, Hosur, and nearby areas,” said Prashant Kajaria, MD of SPA Group. Since the site confirmation, brokers have reported a visible pickup in speculative activity, particularly around Sarjapur, Bagalur, Hosur and Attibele. However, Kajaria noted that several pockets still remain at “pre-boom” levels, offering opportunities for disciplined investors before large-scale developers step in.
Industry voices suggest the impact will not be limited to industrial parks. “Integrated townships are a natural fit for such a development, but they require regulatory clarity, infrastructure support and participation from large developers,” said Nesara BS, Chairman of Concorde.
Chugh stressed that Hosur’s airport will complement, rather than compete with, Bengaluru’s Kempegowda International Airport. “Land costs in and around Hosur are still cheaper compared to Bengaluru’s airport zone. The availability of large land parcels near Hosur could also support the creation of new industrial clusters,” he said.
In the short term, experts expect warehousing and logistics to see the sharpest growth, followed by hospitality (airport hotels, service apartments) and commercial spaces for cargo and 3PL firms. Residential demand is likely to grow gradually, especially among mid-income and premium workers relocating with the industrial and logistics base. Over time, office parks could also take shape, depending on industry adoption.
Typically, speculative interest peaks during the construction phase, but end-user absorption gathers pace closer to completion. “The transition from curiosity to serious demand usually happens when the airport nears operational readiness,” said Nesara.
Chugh cautioned that sustained growth would hinge on supportive government policies and industry participation. However, with Tamil Nadu actively positioning Hosur as part of its industrial corridor push, analysts believe the region is well placed for accelerated growth. For Bengaluru residents seeking larger homes away from the city’s congestion, Hosur could increasingly offer both industrial opportunity and residential appeal.
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Published on October 2, 2025
