The city of Bangalore is encircled by a green belt area, instituted as an urban growth boundary to contain sprawl, ensuring equitable growth and preserving lung spaces. Urban growth boundaries world over are typically known to drive land prices higher in the inner city area. Bangalore has witnessed significant increase in land prices over the last decade, making it increasingly unaffordable. In this context, this paper examines whether the green belt in Bangalore has had a significant impact on land prices, through an analysis of price differentials within and outside the urban growth boundary. This study also debates the relevance of green belt as an urban containment tool in regimes characterized by in­effective provision of infrastructure and lax implementation of zoning regulations.