Following the renaming of Ramanagara district as Bengaluru South, there is a rising demand, led by appeals to Home Minister G Parameshwara, for his home turf - Tumakuru to be merged into Bengaluru and renamed Bengaluru North. This reflects a growing trend of pushing the city’s boundaries to capitalise on the Bengaluru brand. The development reflects a broader push to expand the city’s boundaries and capitalise on the Bengaluru brand’s real estate and investment appeal.

Similar expansions have taken place in the past into areas like Whitefield, Electronic City, and Devanahalli, which helped create new urban nodes tied to the city’s identity.

DK announces his home turf

The push to expand Bengaluru’s boundaries isn’t entirely new. In 2023, Deputy Chief Minister DK Shivakumar declared that “every piece of land will be sold at cost per foot,” referring to developments around Kanakapura, his home constituency and part of Ramanagara district at that time. The remark stirred controversy, with JD(S) leader HD Kumaraswamy alleging that the real intent was to benefit Shivakumar’s substantial landholdings in the area.

Since the renaming, land prices in Ramanagara have nearly doubled- from ₹0.5 crore to over ₹1 crore per acre, along with a sharp rise in apartment prices along the corridor, according to Ritesh Mehta, Senior Director and Head – North, West & East Residential Services, India, JLL.

Brand Bengaluru effect

Analysts suggest that rebranding towns as part of Bengaluru gives them immediate investor credibility. Mehta notes that similar instances, such as Thane’s integration with Mumbai and Noida’s development under Delhi’s influence, show consistent patterns of appreciation. “Satellite areas often see a 15–20 per cent jump in property prices within 2–3 years of formal inclusion, particularly when supported by metro or highway connectivity,” he said.

Tumakuru is already seeing signs of this trend. Developers are launching plotted housing and gated township projects near Nelamangala and Tumkur road, betting on the proposed metro and airport links. “Rebranding alone could raise land values by 10–12 per cent and significantly elevate investor interest, especially in serviced plots and residential developments,” Mehta added.

Residential to lead growth

The residential segment will observe the strongest initial response due to lower entry barriers and faster decision-making cycles, said Priyanka Kapoor, Senior Vice-President – Research & Advisory, ANAROCK Group. “The commercial segment follows once infrastructure and corporate interest catch up. Industrial real estate also gains as companies look for more affordable alternatives to core city locations.”

However, Mehta cautions that land appreciation driven by branding and speculation can reduce affordability for local, lower-income buyers. “Unless matched by dedicated affordable housing supply, proximity to Bengaluru could widen housing inequality,” he said.

Analysts also warn that such administrative expansions come with serious challenges. For one, they risk local governance dilution. “When decision-making is centralised, local autonomy in planning takes a hit,” said Kapoor. Political resistance often emerges from local bodies wary of losing influence and from residents worried about tax changes and a rising cost of living. that such moves can lead to local dilution, further strain the already struggling BBMP, and create unrealistic property price expectations.

Tax harmonisation and land title verification also become complex during such transitions. “Different districts operate under varied tax rates and regulatory structures, which need careful alignment. Administrative reshuffling can lead to temporary legal uncertainty,” she noted.

Additionally, speculative land buying tends to spike ahead of such rebranding. “Investors start purchasing based on future potential, not present utility. This leads to price volatility and increases the risk of unsustainable price corrections,” Kapoor said.

Meanwhile, the BBMP, already grappling with resource and infrastructure constraints, may find it increasingly difficult to manage additional territories without significant planning and capacity upgrades.

Published on June 15, 2025