Foxconn’s arrival is quickly transforming a small rural town in southern India into a hot spot for real estate.
Devanahalli, near Bengaluru’s tech hub, is home to Foxconn’s “Project Elephant,” a massive 13-million-square-foot facility. It covers about 220 football fields. The $ 2.5 billion plant will be Foxconn’s second-largest outside China and will create 40,000 jobs. The factory is part of Foxconn’s plan to reduce reliance on China amid the U.S.-China trade war. The company also aims to double iPhone production in India to 30 million units.
In 2023, the local government approved Foxconn’s Devanahalli project, the largest in an area known for pomelos, blue grapes, and silk. Property prices in the region have gone up 35% since Foxconn moved in. Data from property firm Anarock shows rising demand. Resistance remains among some farmers, who want higher compensation for their land. Many farmers have changed their minds, but some still hold out.
“Foxconn’s arrival is a big turning point for Devanahalli,” said Ashwanth Sajeevan, CEO of PropPulse.ai, a real estate data firm. “It’s like creating a whole new city overnight. The development boosts housing demand, attracts suppliers and small industries, and puts the region in the spotlight.”
Foxconn has partnered with local developers to house workers from China, the Philippines, and Taiwan. Experts expect tens of thousands of new residents, driven by Project Elephant and another nearby project called Project Cheetah, for electric vehicle parts.
Developers now promote properties within 10 kilometers of Project Elephant as “near Foxconn.” Listings have doubled in the past three years. Around 60 projects, including apartments and plots, are being built within 20 kilometers. Prices range from $ 40,000 to nearly $ 700,000.
In December 2023, Neethu Ramagiri saw a sign for luxury apartments in Devanahalli. She visited, got a quick discount, and bought a 1,760-square-foot three-bedroom unit. The apartment was far from the city center and lacked a nearby metro. But sales agents said Foxconn’s presence and new infrastructure would bring future demand.
One year later, Ramagiri’s tenants include three senior Foxconn staff from the Philippines, China, and Taiwan. She knows at least 10 other homeowners renting out their units to Foxconn employees.
Ramagiri now earns 36,000 rupees ($420) a month from rent. She says this amount is higher than the average in the area. Foxconn provides meals for workers, so her kitchen stays in better shape. Her apartment has also increased in value by around 70% since she bought it.
Nearly twenty years before Foxconn started building, Devanahalli was already preparing for change. In 2008, the opening of an international airport marked the start of major government-led growth. The government bought land and set up IT, aerospace, and science parks. Better roads and cheaper land made Devanahalli attract big investments, including companies like Foxconn.
Foxconn plans to keep hiring workers in Devanahalli through 2024 and 2025. Wistron, another supplier for iPhones and now part of India’s Tata Group, is constructing a 1.4-million-square-foot factory, which should create around 3,000 jobs. German software firm SAP is also opening an office nearby.
Before construction, delivery apps like Zomato didn’t run in Devanahalli. The roads were narrow and broken, says real estate agent Ashish Jha. Today, Zomato and Swiggy couriers are common at local restaurants. Amazon also delivers smoothly, and the company is moving its Bengaluru office to Devanahalli by April 2026.
When Jha first sold land in 2019, properties under construction cost about 3,500 rupees ($41) per square foot. Now, prices jump to around 9,500 rupees ($105). The area now has over 36 schools, several malls, and many top hospitals.
Foxconn worked with BCD Group to find housing for workers near Devanahalli. In 2024, they signed a deal for 900 three-year leases. They plan to house between 6,000 and 8,000 women workers in Hoskote, a town next to Devanahalli.
The local government improved services there. They fixed old wells, added filtered borewells, and started recycling wastewater. In 2018, with help from the Gates Foundation, Devanahalli became the first place in India to test a low-cost system that treats poop and turns gray water into drinking water.
The shift from farming to industry has caused conflicts. Land deals are slow, and negotiations are often long. For over two years, farmers from 13 villages have protested. Nearly 1,300 families face eviction notices. Last year, farmers protested when fencing for Foxconn’s land was going up. They said they hadn’t been paid enough for their land.
Officials refused to answer questions about the protests.
Farmers don’t fully trust the government’s promises of jobs from the new tech industry.
“These promises are not new for the villages,” said Ramesh Cheemachanahalli, a farmer leader. “It’s the same fairy tale every time.”
He questioned if the government has plans for real preparation.
Cheemachanahalli added that farmers and their children lack the education and skills needed for the new jobs. Most villagers can’t work in the factories outside simple roles like cleaners or security guards.