Prestige Group's Strategic Chikkamagaluru Entry

Prestige Estates Projects Limited acquired a land parcel in Indavara, Chikkamagaluru, as part of four land additions in Q3 FY26 covering 85 acres cumulatively across Hyderabad, Chennai, Bengaluru and Chikkamagaluru. This acquisition marks a significant strategic shift for the Bengaluru-based developer as it diversifies beyond established urban centres into emerging growth corridors.

The acquisitions expand Prestige Estates' presence in both established urban centres and emerging growth corridors, signalling fresh developer confidence in the Malnad region. The district, long known as Karnataka's coffee land, offers a rare combination of natural beauty, accessibility, and year-round liveability, with mist-covered hills, expansive coffee estates, and Mullayanagiri, the highest peak in Karnataka.

This move reflects broader market trends. India's upper-affluent buyers are shifting from asking 'where should I go on holiday?' to 'where should I belong?', driven by changing lifestyle and wealth preferences. Chikkamagaluru's consistent draw for over 1.5 million tourists annually fuels demand for quality accommodations, with the booming homestay market driven by weekenders from Bengaluru translating into robust real estate demand.

Residential plot prices in Chikkamagaluru town centre are expected to appreciate 8–12% annually over the next three years, supported by new rail connectivity and continued growth in weekend tourism. This macro-trend supports Prestige's entry timing—major developers typically target undervalued markets ahead of infrastructure catalysts.

Prestige's Chikkamagaluru acquisition comes as the company accelerates land additions nationwide. Prestige Estates added four land parcels in Q3 FY26 with an estimated revenue potential of ₹68,500 crore. The firm is 38 years old with over 300 completed projects delivering 180 million sq ft, with an additional 170 million sq ft area underway.

The Malnad region—comprising Chikkamagaluru, parts of Shivamogga, Sagara and surrounding villages—has historically remained underexplored by major tier-1 developers. Prestige's entry signals confidence that the region is transitioning from a pure second-home/vacation destination into a structured residential market supported by infrastructure upgrades and lifestyle migration from nearby metros. For homebuyers and investors, this validates the Malnad region's emerging credibility in India's property landscape.