Crumbling Outer Ring Road pushes more startups, firms towards North Bengaluru, Whitefield

Several other companies based along the traffic-clogged Central Silk Board–KR Puram corridor are reportedly weighing similar moves, favouring areas like Whitefield, now connected by the city’s Purple Line metro, and North Bengaluru, near Kempegowda International Airport.

Going north: A growing tech hub

An increasing number of tech companies and real estate firms are setting up business parks, shifting offices, or opening new offices in North Bengaluru, in areas such as Yelahanka, Jakkur, Hebbal, Thanisandra, and Bagalur, where the Manyata Business Park was once the most prominent landmark.

They include Infosys and Collins Aerospace in Northgate Business Park, Amazon in Sattva Horizon, and Philips at Embassy Business Hub. SAP Labs recently launched its second campus near Kempegowda International Airport (KIA). Similarly, Boeing opened a 43-acre, Rs 1,600-crore engineering and technology centre near KIA in January 2024, its largest facility outside the US. TCS is also opening a new campus at Sattva Knowledge Point in northwest Bengaluru.

Also read: North Bengaluru turns city’s new hotspot, as infrastructure and business lead the way

Siddharth Agarwal, who tracks Bengaluru real estate closely, told Moneycontrol: “Companies are increasingly favouring North Bengaluru due to the airport expansion, Metro connectivity, and the presence of large Grade-A office projects. In contrast, the saturated ORR belt faces rising congestion, space constraints, and escalating costs. Office spaces there cost 20-25 percent more than in North Bengaluru, making North Bengaluru a more sustainable choice.”

Zayd Noaman, president of CREDAI (Confederation of Real Estate Developers' Association of India) Bengaluru, added: “North Bengaluru and Whitefield have become natural magnets for companies, thanks to improved infrastructure, thriving tech ecosystems, and strong talent pools. We’re seeing a clear shift of interest toward these hubs, reflecting confidence in their growth potential and the opportunities they offer for innovation, collaboration, and sustainable business expansion.”

Peush Jain, MD (Commercial Leasing & Advisory), ANAROCK Group, told Moneycontrol: “The expansion of tech companies into Whitefield and North Bengaluru is literally changing the city’s business and commercial real estate landscape. Many new tech parks, including Amazon's new headquarters and Google’s Ananta campus, are coming up between 2024 and 2025. This is driving unprecedented demand for office space and fuelling innovation clusters with next-gen infrastructure and sustainable design.”

ORR’s infrastructure woes

ORR serves as the nerve centre of Bengaluru’s technology sector. However, it faces narrow and damaged roads, traffic congestion, water shortages, flooding during rains, and other infrastructure issues. According to Outer Ring Road Companies Association (ORRCA), IT firms along ORR contribute $22 billion, or 32 percent, of the city’s total IT revenue.

Also, read: Bengaluru’s Outer Ring Road at breaking point: Traffic woes, poor infra trigger outrage

Krishna Kumar Gowda, vice president of Greater Bengaluru IT Companies & Industries Association, said: “Some companies are looking to relocate near operational Metro lines. This includes Purple Line (Whitefield and Old Madras Road), Green Line (Yeshwantpur and Kanakapura Road), and Yellow Line (Hosur Road). With rising congestion on the ORR, companies prefer to be about 500 metres from Metro stations. Some are moving to Airport Road, where the Metro will be completed in two years, traffic flows are better, except for a few choke points at Hebbal, and newer, more affordable tech parks are attracting them to North Bengaluru.”

Bangalore Metro Rail Corporation Limited (BMRCL) plans to open the Blue Line in three phases: Central Silk Board to KR Puram by September 2026, Hebbal to the Airport by June 2027, and KR Puram to Hebbal by December 2027. However, given its track record, these deadlines are unlikely to be met.

ORRCA calls for proactive fixes

ORRCA president Manas Das defended ORR, saying that uprooting a company is not easy. “The ecosystem is entrenched here, and employees are hesitant to move. BlackBuck is the only company that has done it; others have talked about moving but haven’t,” he said.

Das added that the government should focus on fixing infrastructure issues proactively- roads, footpaths, bus stands, and public transport- rather than reacting to relocation plans. “ORRCA’s concern is that companies should work productively and contribute positively, not move due to poor infrastructure. Relocation should be driven by positive incentives, like better tax or land rates, not negative factors,” he said.

Infrastructure driving growth

Urban planners cite three major reasons for this northward growth: KIA in Devanahalli; Bengaluru Metro’s Blue Line (KR Puram - Yelahanka - KIA), approved in April 2021; and cheaper land prices, compared to the east.

Hebbal is set to become Bengaluru’s multi-modal hub, with three metro stations (ORR-KIA, ORR West Metro, and Sarjapur-Hebbal) and a Bengaluru Suburban Rail station on the Byappanahalli-Yeshwantpur- Chikkabanavara corridor.

The Karnataka government is also planning to expedite the long-pending Peripheral Ring Road- an eight-lane, access-controlled expressway connecting Tumakuru Road and Hosur Road via Hessaraghatta, Doddaballapur, Ballari, Hennur, Old Madras, Hoskote, and Sarjapur roads. Another project is the 288-km Bengaluru Satellite Town Ring Road (STRR, NH 948A), a four-to-six-lane access-controlled expressway linking satellite towns like Devanahalli, which is currently under progress.

Also, read: Karnataka plans KWIN City as education hub for premium institutions, global universities