Best 7 Smart Cities In Karnataka: Connectivity, Growth, and Real Estate Trends in 2025

The development of smart cities in Karnataka represents a monumental step towards creating modern, sustainable, and technologically advanced urban centres. A smart city is a metropolitan area that utilises technology to enhance the quality of life, improve services such as transportation and waste management, and ensure sustainable economic growth. For a rapidly growing state like Karnataka, this mission is crucial for upgrading infrastructure, fostering organised urban development, and creating new opportunities in real estate, thereby shaping the future of its major cities in Karnataka.

List of Smart Cities in Karnataka Under Smart Cities Mission

Karnataka has actively participated in the Smart Cities Mission, with seven cities selected for this transformative journey. These cities are being upgraded with modern amenities and smart solutions.

City	Key Projects / Highlights	Real Estate Demand
Bengaluru	Integrated Command & Control Centre, Smart Mobility, Smart Waste Management	High
Belagavi	Smart Roads, Heritage Conservation, E-governance	Moderate to High
Davanagere	Lake Development, Smart Water Management, Public Space Upgradation	Moderate
Hubballi-Dharwad	Green Mobility Corridor, Smart Public Toilets, Digital Library	Growing
Mangaluru	Waterfront Development, Smart Bus Shelters, Efficient Drainage Systems	High
Shivamogga	Riverfront Development, Smart Parking, Solar Power Projects	Growing
Tumakuru	Industrial Area Development, Smart Classrooms, Reliable Water Supply	Moderate to High

Best Smart Cities in Karnataka - Detailed Information

The Smart cities in Karnataka have a unique development plan tailored to their specific needs, focusing on creating a better future for their residents and investors.

1. Bengaluru

Bengaluru, the capital city, is a major IT hub and is being transformed into a globally competitive smart city. The focus is on using technology to address urban challenges such as traffic congestion and waste management, making cities more liveable and sustainable.

Key Features of Bengaluru Smart City

Feature	Details
Population (Approx.)	~10.4 million [1]
Smart City Rank/Status	Among the top-performing cities in project completion
Infrastructure	Advanced metro, smart roads, improved public spaces
Connectivity	Excellent air, rail, and road links; extensive public transport
Major Industries	IT, Biotech, Aerospace, Startups
Key Smart Initiatives	Smart Traffic Management, Integrated Command Centre, Smart Street Lighting
Real Estate Trend	Consistently high demand, growing rental market
Average Property Price	₹6,000 – ₹12,000 per sq. ft. (varies by locality)
Growth Potential	High, driven by IT sector & infrastructure projects
Best Investment Zones	Whitefield, Electronic City, Sarjapur Road, Hebbal
Awards & Recognition	Recognised for innovative use of technology in governance
Portal	blrsmartcity.karnataka.gov.in

Major Smart City Projects in Bengaluru

• Revitalisation of Roads with TenderSURE: Roads like Commercial Street, Brigade Road, Millers Road, and Kasturba Road are being redesigned to create wide lanes, pedestrian footpaths, and underground ducts for utilities.
• Integrated Command and Control Centre (ICCC): Currently in progress, the ICCC will serve as the centre for the city, integrating various civic and police services to monitor traffic, security surveillance, solid waste management, and other city operations in real-time.
• Redevelopment of Shivajinagar Bus Terminal: This project is a transformation of the transport hub, featuring an upgraded terminus, a multi-level parking structure, and a subway to enhance integrated mobility for thousands of daily commuters.
• Digital Transformation in Education: The mission has successfully implemented "Digital Classrooms" in numerous BBMP schools, colleges, and Anganwadi centres. This initiative aims to provide students with modern learning tools and bridge the digital divide.
• Protection and Redevelopment of Cubbon Park: The work involves improving pathways, lighting, and amenities to enhance the park's accessibility and security for its citizens.
• Smart Traffic Management Solutions: In collaboration with Bengaluru Traffic Police, smart solutions, including adaptive traffic signals and surveillance cameras, have been installed in the city's core areas to help ease congestion and improve traffic flow.

2. Belagavi

Belagavi is a historic city in northern Karnataka known for its strategic location and industrial base. The smart city projects here aim to preserve its heritage while upgrading its infrastructure to meet modern standards, focusing on better governance and citizen services.

Key Features of Belagavi Smart City

Feature	Details
Population (Approx.)	Around 4,90,045 – [2]
Smart City Rank/Status	Progress in project implementation
Infrastructure	Upgraded road networks, modernised public markets, and improved water supply
Connectivity	Well-connected by road and rail, a functional domestic airport
Major Industries	Heavy Engineering, Foundries, Agriculture, Hydraulics
Key Smart Initiatives	E-governance platforms, smart classrooms, conservation of heritage sites
Real Estate Trend	Stable with growing demand in newly developed areas
Average Property Price	₹3,500 - ₹5,500 per sq. ft.
Growth Potential	High, due to industrial growth and proximity to Maharashtra and Goa
Best Investment Zones	Tilakwadi, Sadashiv Nagar, Hanuman Nagar
Awards & Recognition	Appreciated for its community engagement in smart city planning
Portal (with links)	bscl.in

Major Smart City Projects in Belagavi

• Kanbargi Lake Rejuvenation: This project has successfully revitalised the 7.4-acre lake, transforming it into a scenic destination with a year-round water supply and creating a recreational public space.
• Khau Katta Pedestrian Market: The creation of Belagavi's first pedestrian-only street market, which features 52 shops and aims to be a vibrant bazaar that supports local and women entrepreneurs.
• District Hospital Upgrade: A key initiative focused on upgrading the Belagavi district hospital, enhancing its infrastructure and facilities to provide better healthcare services to the city’s residents.

3. Davanagere

The smart city mission here focuses on rejuvenating its water bodies, particularly the Kunduvada Kere, and enhancing the overall quality of urban life.

Key Features of Davanagere Smart City

Feature	Details
Population (Approx.)	Around 435,125 – [3]
Smart City Rank/Status	Progress in various infrastructure projects
Infrastructure	Improved water supply and sewerage systems, development of parks and open spaces
Connectivity	Well-connected via National Highways; major railway junction
Major Industries	Textiles, Cotton Ginning, Education, Rice and Sugar Mills
Key Smart Initiatives	Lakefront development, smart water metering, solar-powered streetlights
Real Estate Trend	Moderate and affordable, with potential for growth
Average Property Price	₹3,000 - ₹4,800 per sq. ft.
Growth Potential	Good, driven by educational institutions and SME growth
Best Investment Zones	Vidyanagar, Jayangar, Prince Jayachamaraja Wadiyar Layout
Awards & Recognition	Noteworthy for its focus on sustainable water management projects
Portal (with links)	dvg.karnatakasmartcity.in

Major Smart City Projects in Davanagere

• Kunduvada Kere Lakefront Development: Transforming the lake area into a major tourist and recreational spot with parks, walkways, and boating facilities.
• Area-Based Development (ABD): Upgrading infrastructure in selected city zones with smart roads, uninterrupted power, and better sanitation.
• E-Governance Services: Launching a unified digital platform for citizens to access various municipal services online.

4. Hubballi-Dharwad

The smart city plan for these twin cities of Hubballi-Dharwad aims to enhance mobility, create green spaces, and utilise technology to deliver improved citizen services and promote economic growth.

Key Features of Hubballi-Dharwad Smart City

Feature	Details
Population (Approx.)	943,788 – [4]
Smart City Rank/Status	Consistent performance in project execution
Infrastructure	Bus Rapid Transit System (BRTS), development of public parks, upgraded market areas
Connectivity	Major railway junction, domestic airport, and well-linked by national highways
Major Industries	Manufacturing, Logistics, Education, Automobile Components
Key Smart Initiatives	Green Mobility Corridor, Digital Library, Integrated Solid Waste Management
Real Estate Trend	Growing demand, particularly along the BRTS corridor
Average Property Price	₹3,200 - ₹5,000 per sq. ft.
Growth Potential	High, due to its status as a commercial hub and educational centre
Best Investment Zones	Vidya Nagar, Deshpande Nagar, Gokul Road
Awards & Recognition	Received awards for its innovative public transportation projects
Portal (with links)	hubballidharwad.karnatakasmartcity.in

Major Smart City Projects in Hubballi-Dharwad

• Green Mobility Corridor: A dedicated corridor for non-motorised transport, connecting key areas of the city and promoting cycling and walking.
• Tolankere Lake Development: Rejuvenating the historic lake to create a vibrant public space with recreational facilities.
• Integrated Sports Complex: Developing a modern sports facility to promote sports and wellness among citizens.

5. Mangaluru

Mangaluru’s smart city projects are designed to leverage its coastal location by developing the waterfront, improving urban mobility, and making the city more resilient to environmental challenges.

Key Features of Mangaluru Smart City

Feature	Details
Population (Approx.)	Around 7,24,159 – [5]
Smart City Rank/Status	One of the leading cities in project completion and fund utilisation
Infrastructure	Modern fishing harbour, improved drainage systems, smart bus shelters
Connectivity	International airport, major seaport, and excellent road and rail networks
Major Industries	Port-based industries, Petrochemicals, IT, Banking, Education
Key Smart Initiatives	Waterfront Promenade Development, Smart City Command Centre, LED Street Lighting
Real Estate Trend	High demand, especially for sea-facing properties
Average Property Price	₹4,500 - ₹7,500 per sq. ft.
Growth Potential	Very High, driven by port activities, IT growth, and tourism
Best Investment Zones	Kadri, Bejai, Derebail, Surathkal
Awards & Recognition	Recognised for its innovative approach to urban waterfront development
Portal (with links)	mangalurusmartcity.net

Major Smart City Projects in Mangaluru

• Waterfront Promenade: Developing the area along the Gurupura River as a recreational and tourist destination.
• Smart Bus Shelters: Installing modern bus shelters equipped with digital display boards, seating, and mobile charging points.
• Underground Cabling: Shifting overhead power and communication cables underground to improve safety and the city's appearance.

6. Shivamogga

Known as the 'Gateway to Malnad', Shivamogga’s smart city initiatives focus on sustainable development, including riverfront projects, promoting tourism, and upgrading the city’s core infrastructure.

Key Features of Shivamogga Smart City

Feature	Details
Population (Approx.)	Around 3,22,650 – (6)
Smart City Rank/Status	Significant developmental works
Infrastructure	Riverfront development, improved road network, modernised sports facilities
Connectivity	The new airport has recently become operational; good rail and road connectivity
Major Industries	Agriculture (Areca nut), Education, Tourism, Rice Mills
Key Smart Initiatives	Tunga Riverfront Development, Smart Parking Systems, Waste-to-Energy Plant
Real Estate Trend	Steadily growing, with increased interest after the airport launch
Average Property Price	₹3,000 - ₹5,000 per sq. ft.
Growth Potential	High, driven by tourism and improved connectivity
Best Investment Zones	Vinobanagar, Gopala, Kuvempu Nagar
Awards & Recognition	Praised for its focus on eco-friendly and sustainable urban projects
Portal (with links)	shivamoggacitycorp.org

Major Smart City Projects in Shivamogga

• Tunga Riverfront Development: Creating a vibrant public space along the Tunga River with parks, walkways, and cultural zones.
• Shivappa Nayaka Market Redevelopment: Modernising the city's central market with better facilities for vendors and customers.
• Integrated Command and Control Centre: Establishing a central system to monitor and manage city services efficiently.

7. Tumakuru

Tumakuru’s smart city mission aims to develop it as an industrial satellite town with robust infrastructure and a high quality of life.

Key Features of Tumakuru Smart City

Feature	Details
Population (Approx.)	Around 400,442 – [7]
Smart City Rank/Status	Leading in the number of projects initiated and completed
Infrastructure	Development of industrial parks, improved water supply from the Hemavathi river, smart roads
Connectivity	Excellent road and rail connectivity, part of the Bengaluru-Mumbai industrial corridor
Major Industries	Food Processing, Manufacturing, Education, Solar Power
Key Smart Initiatives	Smart Classrooms, Public Bicycle Sharing, Amanikere Lake Development
Real Estate Trend	High growth potential due to industrial development and proximity to Bengaluru
Average Property Price	₹2,800 - ₹4,500 per sq. ft.
Growth Potential	Very High, positioned as a key industrial and investment destination
Best Investment Zones	SIT Extension, Saraswathipuram, Kyathsandra
Awards & Recognition	Acknowledged for its efficient project implementation and citizen-centric initiatives
Portal (with links)	smartcitytumakuru.in

Major Smart City Projects in Tumakuru

• Amanikere Lake Development: Rejuvenation of the historic Amanikere Lake to transform it into a major recreational and ecological zone.
• Public Bicycle Sharing System: Promoting an eco-friendly mode of transport for short-distance travel within the city.
• Digital Poles: Installation of multi-functional poles that provide Wi-Fi, street lighting, and surveillance.

Funding & Phase-Wise Distribution

The Smart Cities Mission in Karnataka has been rolled out in 3 phases, with funding shared by the Central and State Governments to ensure steady progress.

• Phase 1 (2016): The cities of Belagavi and Davanagere received approximately ₹196 crore from the Central Government, with the State Government providing matching funds to kick-start the projects.
• Phase 2 (2017): The cities of Hubballi-Dharwad, Mangaluru, Shivamogga, and Tumakuru received between ₹155-₹196 crore each from the Centre and state for projects focusing on transport, water supply, and housing.
• Phase 3 (2018): Bengaluru received ₹155 crore from the Centre and ₹55 crore from the State for high-priority technology-driven projects like smart traffic systems and e-governance.

Funding Trends:

• The funding model ensures an almost equal contribution from the Central and State Governments.
• Major metropolitan areas like Bengaluru have a budget focused more on technology and governance.
• Tier-2 cities such as Belagavi, Davanagere, and Tumakuru received higher per-capita allocations to strengthen their core infrastructure.

Status of Work in Smart Cities in Karnataka

The progress of smart city projects across Karnataka is actively monitored, with a significant number already completed and many others underway.

City	Total Projects Approved	Projects Completed	Ongoing Projects	Budget (₹ in Crores)
Belagavi	216	130	75	3,933.94
Bengaluru	42	5	35	1,803.87
Davanagere	106	39	61	1,867.19
Hubballi-Dharwad	74	36	36	2,785.54
Mangaluru	81	39	40	2,934.69
Shivamogga	99	59	37	1,600.67
Tumakuru	199	141	53	2,238.55

Impact on Real Estate in Karnataka

The development under the Smart Cities Mission has had a profound and positive impact on the real estate sector across the state.

• Increased Property Value: Infrastructure upgrades like smart roads and improved water supply have led to a significant appreciation in property values.
• Higher Demand for Housing: Improved livability and job creation in these cities have boosted the demand for residential properties.
• Growth in Commercial Real Estate: The focus on economic growth and industrial development has spurred demand for office spaces and retail outlets.
• Emergence of New Investment Hotspots: Development is no longer concentrated in one area, leading to the growth of new residential and commercial zones.
• Improved Rental Yields: With better amenities and connectivity, property owners are commanding better rental incomes.

Challenges & Future Outlook in Smart Cities

While the progress is commendable, the journey of transforming these urban centres is not without its challenges.

• Timely Project Completion: Ensuring that all projects are completed within the defined timelines is a major challenge.
• Inter-Agency Coordination: Effective coordination between various government departments is crucial for smooth execution.
• Land Acquisition: Acquiring land for large-scale infrastructure projects can often cause delays.
• Citizen Participation: Encouraging active participation from citizens is key to the long-term success and sustainability of the projects.
• Financial Sustainability: Developing a model that enables the maintenance of smart city assets without relying on constant government funding is crucial for the future.

The future outlook remains positive, with these cities poised to become models of sustainable urban development, attracting further investment and talent.

Find Out More Smart Cities in India

• Smart Cities in India
• Smart Cities in Maharashtra
• Smart Cities in Tamil Nadu

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