Why Electronic City Phase 2 Is Emerging as the New Investment Magnet

Electronic City has long been synonymous with Bengaluru’s IT boom, but in the past five years, Electronic City Phase 2 real estate has emerged as the region’s most exciting new growth pocket. 

A recent analysis shows that South Bengaluru, particularly the Electronic City belt, accounted for almost 22–25% of the city’s new residential supply in 2023–24, with Phase 2 witnessing the sharpest growth. 

With upcoming residential and commercial developments near key IT hubs, including new projects near Infosys campus Electronic City, Phase 2 is Bengaluru’s next big investment magnet. 

What Differentiates Phase 2 from Phase 1

For years, Phase 1 dominated the Electronic City narrative because it housed the earliest tech parks, landmark IT campuses, and the first wave of gated communities. But as Bengaluru expanded and demand surged, Electronic City Phase 2 real estate began evolving into an independent, high-potential residential and investment zone. 

Larger Land Parcels & Better Scope for Planned Townships

In contrast to Phase 1, Phase 2 offers significantly bigger land parcels, enabling developers to build well-planned townships, integrated communities, and premium gated societies with modern amenities.

This availability of space has allowed for wider internal roads within townships, large open spaces and amenity zones and future-ready designs ideal for 3 BHK and 4 BHK flats for sale in Electronic City. Because of these advantages, many buyers looking for 3 BHK apartments in Electronic City are favouring Phase 2.

Superior Road Connectivity and Traffic Flow

While Phase 1 connects directly to Hosur Road and the elevated expressway, Phase 2 benefits from multiple arterial roads:

• Hosur Road–NICE Road Interchange
• Phase 2 Main Road Broadening Projects for traffic distribution
• Proximity to Huskur Road, Chandapura–Anekal Road, and Neeladri Road

These upgrades have significantly reduced congestion, making daily commutes smoother for professionals working in tech parks.

Proximity to Major IT and R&D Campuses

Phase 2 hosts many of the region’s biggest and newest technology clusters. The Infosys campus, TCS, Tech Mahindra, HP, and Biocon form a strong employment ecosystem around which residential demand naturally grows.

This has a direct impact on strong rental demand of apartments near Electronic City and long-term value appreciation due to job-driven population inflow. As a result, upcoming apartments near Infosys Electronic City are expected to see strong buyer interest over the next 3–5 years.

Mix of Affordable and Premium Housing

Phase 1 has become more premium over the years, with rising property prices and shrinking availability. Phase 2, however, offers a broader portfolio of budget-friendly flats in Electronic City as well as premium electronic city luxury apartments. This range makes Phase 2 suitable for first-time buyers, growing families, and investors.

Major infrastructure projects Driving Interest

Infrastructure is what is turning Electronic City Phase 2 real estate into an investment magnet. Below are the most impactful projects shaping Phase 2’s rise:

1. Namma Metro Yellow Line (RV Road – Bommasandra)

Status: Operational in 2025

Length: 19.1 km

Key Stations: Bommasandra, Huskur Road (Phase 2), Hebbagodi, Electronic City Phase 1

The launch of the Yellow Line is one of the biggest catalysts for both Phase 1 and Phase 2. But its impact on Phase 2 is particularly significant due to:

• Direct connectivity to JP Nagar, RV Road, and rest of the city
• Reduced travel time to CBD and South Bengaluru
• Drastic reduction in dependence on Hosur Road traffic
• Increased demand for rental homes near metro stations

For buyers seeking upcoming apartments near Infosys Electronic City, proximity to Yellow Line stations has become a key selection factor.

2. NICE Road Expansion & Peripheral Connectivity

The NICE Road stretch connecting Phase 2 to Mysuru Road, Tumakuru Road, Bannerghatta Road, and Kanakapura Road has become a lifeline for residents and businesses. The proposed expansion plan (announced in 2024) aims to widen sections of the corridor, further increasing connectivity for residential hubs around Huskur and Chandapura.

3. Elevated Hosur Road Corridor

The 9.8 km elevated expressway connecting Silk Board to Electronic City has already improved traffic flow since its launch, but Phase 2 is benefiting from complementary upgrades like new slip roads, additional flyovers, wider service lanes and better signal coordination for smoother movement. Together, these enhancements are estimated to reduce peak-hour commute delays by 20–25%.

4. SEZ Expansion and Growing Employment Clusters

Phase 2 houses some of the most advanced IT, biotech, and R&D hubs in the city such as Infosys (largest corporate campus), Tech Mahindra, Wipro, HP, Biocon, TCS, Siemens, etc. 

Government notifications indicate multiple new ELCITA-managed industrial clusters and R&D zones being proposed around Phase 2. These will further boost the demand for apartments in Electronic City, especially rental-driven properties.

5. Social Infrastructure Growth

Unlike a decade ago, Phase 2 now offers an ecosystem that rivals established Bengaluru suburbs:

Rising social infrastructure has played a key role in attracting families who traditionally preferred Phase 1.

Developer Activity and Township Growth

As the demand for Electronic City Phase 2 real estate continues to surge, developer activity in the corridor has intensified and with good reason. 

Unlike earlier days when the supply in Electronic City consisted mainly of standalone apartment blocks, Phase 2 is now seeing:

• Large-scale township offerings with multiple towers, open greens, clubhouses, and retail hubs.
• Integrated communities that combine residential, leisure, and work amenities.
• Low-density developments that appeal to premium buyers looking for space and modern living.

These projects are shaping a new residential identity for Phase 2, making it more than just a “job-belt” suburb.

Recognising the potential of the corridor, top developers are launching wide-ranging portfolios. 

Puravankara Limited is a strong example of a brand that is already executing in this corridor, offering both accessible homes and up-market living in its township & apartment clusters near Electronic City Phase 2.

Is Electronic City Phase 2 an Investor Haven? 

For serious investors, the appeal of Electronic City Phase 2 real estate goes beyond location and infrastructure.

Price Trends

Across Bengaluru, average residential prices rose by 10–11% year-on-year in 2023–24, driven by end-user demand and limited quality supply in key micro-markets. South Bengaluru, including Electronic City, was one of the key beneficiaries of this momentum.

Broad market data indicates that:

• South Bengaluru corridors such as Electronic City have seen compounded price growth of 20-30% between 2019 and 2024.
• Within this, Electronic City Phase 2 real estate has moved from an “early-stage” zone to a mature, end-user plus investor market, with prices in many gated communities now stabilising in the mid-segment bracket while still being lower than ORR or Whitefield.

Rental Yields

Rental demand in Electronic City is anchored by solid employment. Typical trends seen in Electronic City and Phase 2:

• Gross rental yields of around 4–5% for well-located 2 & 3 BHK units in gated communities, which is higher than many central Bengaluru micro-markets where prices are higher but rents have grown more slowly.
• Premium 3 BHK flats in Electronic City and select upcoming apartments near Infosys Electronic City command even stronger yields when they combine walk-to-work convenience with modern amenities, co-working spaces, and good maintenance standards.

For investors evaluating investment in Electronic City Phase 2, this mix of IT-led tenant base, Metro-driven accessibility and mid-ticket rentals makes it a steady yield play.

Long-Term Potential

What sets Electronic City Phase 2 real estate apart is that it is still in an expansion phase, not saturation.

Key reasons its long-term potential looks strong:

• The full impact of the Metro Yellow Line and improved last-mile road upgrades will unfold over the next few years.
• Unlike saturated hubs closer to the city core, Phase 2 still has relative land availability for new projects near Infosys campus Electronic City and other tech parks.
• From compact 2 BHKs to larger 3 BHK apartments in Electronic City and premium 4 BHK formats, Phase 2’s product mix ensures it can serve multiple buyer segments over time instead of being locked into a narrow demand band.

Final Take

Electronic City Phase 2 has emerged as one of Bengaluru’s most promising investment corridors. 

With the Namma Metro Yellow Line, wider arterial roads, and the NICE Road expansion, it has become a strategic hub for both end-users and investors. Ongoing IT expansion around the Infosys, Tech Mahindra, HCL and Biocon campuses continues to create steady demand for apartments near Electronic City, particularly 2 BHK and 3 BHK homes.

In this backdrop, Puravankara’s upcoming project near the Infosys campus adds modern amenities, future-ready layouts and strong community living to the mix. Together, these factors reinforce the long-term appeal and value of Electronic City Phase 2 real estate as a balanced choice for residential use as well as investment.

Frequently Asked Questions

1. Which are the best residential pockets in Electronic City Phase 2?

Some of the most preferred micro-markets in Electronic City Phase 2 include the Infosys campus belt (Huskur-Hebbagodi stretch), Doddanagamangala, Neeladri Extension, and areas close to the upcoming Bommasandra Metro Station. 

2. Is Electronic City Phase 2 a good place for rental income investors?

Yes. With over 2.5 lakh professionals working across Infosys, HCL, Tech Mahindra, Biocon and other tech parks, rental demand remains consistently high. Investors typically earn 3–4% rental yields for 2 & 3 BHK units, and there are trends of higher yields in walk-to-work pockets near major campuses. 

3. Are there new projects near the Infosys Electronic City? 

Yes, several upcoming apartments near Infosys Electronic City are attracting attention due to their prime positioning and walkable access to IT campuses. Puravankara’s upcoming residential community, located strategically near key tech hubs, offers modern amenities, efficient layouts, security features and strong future appreciation potential. 

4. How well is Electronic City Phase 2 connected to other parts of Bengaluru?

Phase 2 has rapidly evolved into a high-accessibility corridor thanks to the Namma Metro Yellow Line (RV Road–Bommasandra), the Hosur Road Elevated Expressway and NICE Road junction connectivity

With these upgrades, commute times have reduced significantly, which has directly enhanced demand for flats in Electronic City. 

5. What is the price trend of Electronic City Phase 2 real estate?

Electronic City Phase 2 real estate offers a relatively attractive entry point compared to many other Bengaluru corridors. As a broad range:

• 1 & 2 BHK apartments in Electronic City (Phase 2): from approx. ₹45–70 lakh in mid-segment gated communities
• 2.5 & 3 BHK units: from approx. ₹75 lakh to ₹1.2 crore in well-amenitised projects
• Larger 3 BHK / 4 BHK formats or premium towers near major campuses: upwards of ₹1.3–2 crore, depending on specifications and brand