The picturesque Nandi Hills are emerging as a favorite backyard holiday destination in Bangalore. The beautiful region known for its green hill terrain, natural springs, lakes, misty clouds and popular tourist spots attracts real estate developers and buyers alike. In the past 12 years, property prices have increased by 259%, to 6,426 rupees per sq ft in 2022 from 1,790 rupees per sq ft in 2010, according to the latest research by 360 Realtors.
In the luxury segment, the jump has been even sharper with a growth of more than 350% in the past 12 years. Currently, average luxury property prices are more than Rs 10,000 per sqft in Nandi Hills. The area, located just 60 km from Bangalore city center (about 20 km from the airport), is a thriving land for vacationers or second homes with planned projects, gated villas, cottages, low-rise buildings, farms, etc.
The Nandi Hills area continues to gain momentum with home buyers, second home enthusiasts, investors, hospitality developers and villa operators attracting to the area in large quantities. Average real estate prices jumped 4.6% over the 2020-22 period, despite a slowdown caused by the pandemic. During the period 2015-2020, average real estate prices grew at a compound annual growth rate of 11.7%.
Commenting on the growing popularity of Nandi Hills, Ankit Kansal, Managing Director and Founder of 360 Realtors, said, “In addition to the scenic beauty and serene environment, the growth of Nandi Hills is also supported by solid economic fundamentals. The area is close to the busy employment markets of North Bangalore and the airport area, which increases demand for it.”
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“On a normal day, Nandi Hills receives around 3,000 tourists. During weekends, it can reach 8,000. The optimistic tourism market naturally indicates an increase in demand for real estate,” adds Kansal.
Until now, Nandi Hills was managed by the Horticultural Department. However, the area has recently been taken over by the state Ministry of Tourism, with the main objective of developing first-class tourism facilities and infrastructure. Several large projects are under development, including a 2.9 km ropeway, hiking trails in the nearby hills, hotels, resorts, parks, shopping complexes, concert hall, etc. The G20 delegates coming to Bangalore will also visit Nandi Hills, adding to its public reputation.
Nandi Hills is also a favorite destination for long term leases, labor, and telework by business professionals, tech entrepreneurs, creative professionals, consultants, etc. Besides working, there are plenty of free activities to do like trekking, cycling, walking in Nature, Yoga, Meditation etc. Next to Nandi Hills there are dense forest reserves which have lots of animals, migratory birds etc., which attracts the attention of wildlife lovers, photographers, nature lovers, etc.
As Nandi Hills is gaining a reputation as Bangalore’s lush green backyard, the rental market is also accelerating. There are premium 3-bedroom and 4-bedroom villas that start from Rs 75,000 per month and can go up to Rs 450,000 in monthly rentals. According to research by 360 Realtors, the average annual rental yield is around 6.6%, making it a strong competitor to other fast-growing second home markets in India such as Lonavla (5.9%), Ooty (4%) and Sindhudurg (7.2%).