Foxconn Factory Turns Devanahalli Into Real Estate Hotspot

Foxconn’s $2.5 billion factory project has triggered a real estate boom in Devanahalli, a once-quiet rural town on the outskirts of Bengaluru. The mega facility, dubbed “Project Elephant,” is being built on a 13-million-square-foot plot and is expected to create 40,000 jobs, becoming the company’s second-largest plant outside China.

Since Foxconn’s 2023 entry, land and property prices in the region have surged by 35%, according to real estate consultancy Anarock. Devanahalli, known for its farmland and fruit crops, is quickly transforming into a sought-after investment zone, attracting developers and buyers banking on future infrastructure and job inflows.

“This is a pivotal moment,” said Ashwanth Sajeevan, CEO of PropPulse.ai, a Bengaluru-based real estate data platform. “Foxconn’s scale brings with it a wave of housing demand, ancillary industries, and economic attention.”

Foxconn’s plan to double iPhone production in India to 30 million units, along with a nearby electric vehicle component facility – “Project Cheetah” – is fueling the region’s growth. Developers are now advertising homes as “near Foxconn,” with listings doubling in the past three years. PropPulse estimates about 60 residential projects are currently under development within a 20-kilometre radius, with prices ranging from ₹34 lakhs to ₹6 crore.

The demand is driven not just by Indian workers, but also by a foreign workforce from China, the Philippines, and Taiwan. Foxconn has partnered with local developers to house its international employees, many of whom have already moved in.

One such investor, Neethu Ramagiri, an IT professional, bought a 1,760 sq. ft. apartment in late 2023 after spotting a billboard during a family outing. Today, she earns ₹36,000 (\$420) per month in rent from three senior Foxconn employees.

“I knew at least ten others in the complex who did the same,” Ramagiri said. Her apartment has appreciated by 70% in just over a year.

Despite the boom, resistance remains. Some farmers are still holding out for better land compensation. But the tide is shifting, and with it, the real estate landscape of Devanahalli.