A Budget for the People: Karnataka Unveils Bold Initiatives for 2025
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.”