Karnataka is witnessing a significant real estate transformation, driven by the Bengaluru–Vijayawada Expressway under Bharatmala Phase II. The greenfield project, officially titled NH-544G, is reducing travel times and improving regional connectivity, catalyzing both residential and commercial development across Karnataka and Andhra Pradesh. As land values appreciate and new corridors emerge, developers and investors are targeting areas along the expressway for affordable housing, plotted developments and industrial clusters. Strategic urban expansion is now redefining future growth patterns across the 11 impacted districts in both states.
The Bengaluru–Vijayawada Expressway is a major infrastructure initiative being executed by the National Highways Authority of India (NHAI) as part of the second phase of the Bharatmala Pariyojana. With a total length of approximately 518 kilometers, the expressway will directly connect Kodikonda in Karnataka to Addanki near Vijayawada in Andhra Pradesh. Including its feeder routes and road extensions, the alignment covers 624 kilometers in total. Estimated to cost between Rs 14,000 crore to Rs 19,320 crore, the project is expected to be completed by 2026 or 2027. Once operational, it will reduce travel time between Bengaluru and Vijayawada from 12 to 13 hours to just about six hours, delivering a signal-free, high-speed corridor with controlled access and modern logistics features.
Strategically, the expressway connects two critical national highway networks — NH-44, which forms part of the North-South Corridor, and NH-16 along the East Coast Economic Corridor. This positioning makes it a vital artery for freight movement, trade expansion, and regional development across southern India. The expressway influences 11 districts across Karnataka and Andhra Pradesh, sparking interest among real estate developers, land bankers, and institutional investors. The connectivity benefits are catalyzing new growth corridors, particularly in peri-urban and suburban regions that were previously considered remote or underdeveloped.
Key micro-markets gaining momentum include Devanahalli, Hoskote, Budigere Cross, Kolar, Chikkaballapur, Chittoor, and Tirupati. With improved access to commercial hubs and major employment zones, these areas are now attracting working professionals, retirees, and remote workers seeking affordable yet well-connected residential options. This growing interest has led to a surge in affordable housing developments, plotted layouts, and gated community projects. The corridor is also appealing to Non-Resident Indian (NRI) investors and real estate funds targeting early-stage development opportunities with high capital appreciation potential.
Proximity to key economic drivers like Kempegowda International Airport, Aerospace and Hardware Special Economic Zones (SEZs), logistics hubs, and future industrial clusters has further improved the region’s appeal. The combination of reduced commute times and evolving social infrastructure is positioning these locations as future-ready residential hotspots. Initial market data suggests that investors in land parcels along the corridor are seeing a 30 to 40 percent appreciation in property values over a 3 to 5 year investment horizon. In comparison, the Bengaluru–Mysuru Expressway witnessed a 40 to 50 percent jump in land values post-completion, further validating the expressway-led development model.
Institutional interest is also growing, with activity from private equity firms, real estate investment trusts (REITs), and high-net-worth individuals (HNIs). Peri-urban areas and farmlands are being converted into plotted developments and commercial zones in anticipation of the infrastructure boost. Despite the positive momentum, several challenges persist. Land acquisition remains a complex and time-consuming process due to compensation disputes, local resistance, and administrative bottlenecks. Additionally, coordination between Karnataka and Andhra Pradesh authorities on regulatory alignment, infrastructure zoning, and land use planning continues to require attention.
Regulators must also focus on integrated urban planning to avoid haphazard development. Attention is needed on sustainable zoning, transport and utility infrastructure, and environmental conservation. Rapid urbanization without adequate planning could result in disconnected settlements lacking basic amenities and services. Another consideration is the need for a balanced approach between speed and sustainability. While development pressure is high, the government must ensure long-term viability through phased planning and monitoring. This includes ecosystem-sensitive designs, efficient road linkages, public amenities, and disaster-resilient construction practices.
Complementary social infrastructure is also being established, including polyclinics, ambulance networks, upgraded roads, footpaths, and recreational spaces. New commercial developments are emerging to support growing neighborhoods, including retail outlets, cafes, service centers, and coworking hubs. The expressway’s long-term return on investment is considered promising across multiple sectors. Apart from residential and commercial developments, warehousing, logistics parks, and light industrial zones are expected to flourish in strategically located nodes along the route.
In conclusion, the Bengaluru–Vijayawada Expressway is shaping up to be more than just a transport initiative. It is driving multi-sectoral transformation and unlocking untapped real estate potential across Karnataka and Andhra Pradesh. As regulatory, logistical, and development challenges are addressed, the expressway corridor is expected to emerge as one of South India’s most influential growth engines in the coming decade.
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Karnataka Bengaluru Vijayawada Expressway sparks real estate boom across Karnataka and Andhra Pradesh
