By: Shantanu Mazumder, Executive Director, Bengaluru, Knight Frank India

The Karnataka Budget 2025 lays a strong foundation for real estate and infrastructure growth, particularly in Bengaluru. The ₹40,000 crore allocation for the Bengaluru tunnel corridor project, supported by a ₹19,000 crore government guarantee, is a transformative step toward decongesting the city and enhancing connectivity​. Additionally, the ₹27,000 crore Bengaluru Business Corridor, which will develop a 73 km road network, is a critical investment that will improve accessibility and create new real estate opportunities​.

The government’s emphasis on housing and urban development is commendable, with key initiatives such as the Karnataka Housing Board’s plan to develop 16,140 plots in Bengaluru’s Suryanagar Phase-IV and a ₹1 lakh deposit waiver benefiting 12,153 homebuyers under the CM’s 1 Lakh Multi-storey Housing Scheme​​. Additionally, the interest subvention scheme under AHP housing will further enhance affordability, making homeownership more accessible​.

The focus on transportation infrastructure is set to elevate Bengaluru’s real estate landscape. The ₹3,000 crore investment in 300 km of new roads, the ₹8,916 crore double-decker flyover project, and the ₹7,000 crore annual grant for Bengaluru’s infrastructure improvements will improve connectivity and unlock new growth corridors​​.

This budget is a progressive step toward strengthening Karnataka’s real estate ecosystem. The strategic investments in infrastructure and housing will boost residential demand and commercial expansion, particularly in Bengaluru’s emerging micro-markets. Going forward, sustained efforts to attract Global Capability Centres (GCCs), warehousing investments, and commercial real estate developments will further drive Karnataka’s position as a leading investment destination.”