Bangalore is on the brink of a significant transformation with the development of its second international airport. This project aims to meet the city’s soaring demand for air travel and enhance connectivity. But what does this mean for you? As property values in surrounding areas are expected to rise, now is the time to consider your investment options.
Keep reading to discover how this airport project could impact property prices and create new investment opportunities in Bangalore.
Details and Overview
Bangalore is on the cusp of a transformative shift with the establishment of its second international airport. This decision comes in response to the city’s surging demand for both passenger and cargo services, as well as the projected urban expansion that necessitates improved air travel infrastructure.
Proposed Location
The selected site for the new airport is strategically positioned between Nelamangala and Kunigal, approximately 30 kilometres from Bengaluru’s city centre. This location has emerged as the frontrunner following extensive evaluations by the Karnataka government and the Airports Authority of India (AAI).
The choice is based on several critical factors:
- Strong Connectivity: The area is well-served by major transport links, including National Highway 75, NICE Road, and upcoming developments like the Peripheral Ring Road (PRR) and the Satellite Town Ring Road (STRR).
These enhancements will facilitate smoother transit for travellers, significantly reducing congestion on current thoroughfares such as Mysore Road and Kanakapura Road.
- Availability of Land: The region offers a considerable amount of government land, making it conducive for airport construction and future expansion.
- Future Growth Potential: The site meets 15 essential criteria set by the AAI for new airport establishments, indicating its readiness to accommodate extensive airport infrastructure.
The new airport is not just about transportation; it’s also a significant economic catalyst. As Bangalore solidifies its position as the Silicon Valley of India, the airport will attract multinational corporations, investors, and tourists, all seeking proximity to this burgeoning economic hub.
The demand for commercial as well as residential properties is expected to soar, creating a vibrant real estate market that caters to the needs of a diverse workforce.
Impact on Property Prices
The establishment of the second International Airport is poised to reshape the real estate market in Bangalore. The airport’s development is expected to significantly influence property prices, drawing parallels with the historical trends observed around Kempegowda International Airport (KIA) and similar projects in other cities.
Historical Trends
The opening of Kempegowda International Airport (KIA) in 2008 serves as a prime example of how airport development can drive property prices in surrounding areas.
- Following its inauguration, regions like Devanahalli witnessed a remarkable surge in land values. Specifically, land prices escalated by 86.1% in the last decade. This increase in property prices over a few years highlights the strong correlation between the airport’s presence and real estate appreciation.
- Additionally, the overall real estate market in North Bangalore experienced an annual growth rate of around 15-20% post-KIA’s launch, indicating a robust demand for properties fuelled by enhanced connectivity and increased economic activity in the region. These historical trends underscore the potential for significant property value increases in areas near the upcoming Hosur International Airport.
- Comparative analysis with other cities further reinforces this trend. For example, around the Navi Mumbai International Airport, property prices surged by 40-50% from the announcement of the airport to its construction phase.
Such patterns illustrate a consistent market response to airport developments, making it reasonable to anticipate a similar impact in Bangalore.
Factors Affecting Property Prices
Several key factors will determine the trajectory of property prices in Bangalore following the construction of the new airport:
- Proximity to the Airport: Properties located closer to the airport are likely to see higher appreciation rates due to increased demand from businesses and residents seeking convenience and accessibility.
- Economic Growth: The airport’s ability to attract multinational corporations and enhance the region’s economic landscape will drive demand for commercial spaces. This, in turn, will fuel the residential real estate market as workers seek nearby housing.
- Infrastructure Development: The accompanying infrastructure improvements, such as upgraded road networks, public transport enhancements, and amenities, will boost the attractiveness of surrounding areas, leading to increased property values.
- Speculative Investments: Anticipation of future price hikes may lead investors to purchase properties near the new airport, further inflating prices. Speculative buying often accelerates price increases in the lead-up to significant infrastructure projects.
- Market Sentiment: Positive perceptions surrounding the airport’s potential will influence buyer confidence. If stakeholders believe the airport will enhance connectivity and economic viability, demand will rise, further impacting prices.
Areas Affected by the Upcoming New Airport in Bangalore
The proposed second international airport near Nelamangala is nearing conclusion but is not yet finalised. This project is expected to influence several areas significantly. Here’s a closer look at the regions that could be impacted:
Nelamangala
As the site closest to the airport, Nelamangala is set to experience the most immediate effects. Property values may increase as infrastructure develops to support airport operations, attracting residential and commercial investments.
Kunigal
Located just south of the site, Kunigal stands to benefit from enhanced connectivity. The anticipated growth in commercial activities could lead to a rise in property demand as businesses emerge to serve the airport community.
Tumkur Road
With Tumkur Road being a key transit route, the area will likely see significant development. Improved access to the airport could boost logistics and commercial hubs, driving up property values along this corridor.
Nearby Villages
Villages surrounding Nelamangala, such as Magadi and Doddaballapur, may also experience changes. The airport’s proximity could encourage the conversion of agricultural land for residential and commercial use, presenting investment opportunities.
Investment Opportunities Near Bangalore Upcoming Airport
The upcoming second international airport near Nelamangala presents a unique landscape of investment opportunities in the Bangalore real estate market.
As the project approaches its conclusion, potential investors should consider the following key areas for capitalising on growth:
Residential Developments
With the anticipated influx of residents due to the airport’s proximity, investing in residential projects can yield significant returns. Areas like Nelamangala, Kunigal, and those along Tumkur Road are expected to see increased demand for housing. Developers and investors can explore options for gated communities, apartments, and affordable housing to meet this rising need.
Commercial Real Estate
The airport is likely to attract businesses ranging from logistics and hospitality to retail and service industries. So, areas surrounding the airport and key transit routes like Tumkur Road will be prime locations for commercial properties. Investing in office spaces, warehouses, and retail outlets can provide lucrative opportunities as the local economy grows.
Land Acquisition
Purchasing land in strategic locations near the airport can be a smart long-term investment. As the area develops, land values are expected to be appreciated. Investors should consider acquiring plots in Nelamangala, Kunigal, and nearby villages before prices escalate due to heightened demand.
Infrastructure Projects
The new airport will necessitate significant infrastructure improvements, including roads, public transport, and utilities. Also, companies involved in construction, engineering, and logistics will find opportunities to partner with government agencies and private developers. Investing in infrastructure-related businesses can provide substantial returns as demand increases.
Hospitality Sector
With an influx of travellers and business professionals, the hospitality sector is poised for growth. Opportunities exist for hotel developments, serviced apartments, and vacation rentals in proximity to the airport. Investors should consider targeting markets that cater to both business and leisure travellers, tapping into this expanding customer base.
Conclusion
As Bangalore prepares for its new airport, the potential for growth in property prices is substantial. This development will not only enhance connectivity but also attract businesses and residents, creating a thriving real estate market. Investors should act strategically to capitalise on these emerging opportunities.
For those seeking to finance their dream home, Credit Dharma offers exclusive low interest rates, the highest funding options, and dedicated experts to guide you through the process. Don’t miss out on the chance to benefit from this transformative project!
Frequently Asked Questions
The airport is expected to significantly boost property values in surrounding areas due to increased demand from residents and businesses.
Regularly follow real estate news, and local government announcements, and connect with real estate agents specialising in the Bangalore area for the latest updates.
Areas like Nelamangala, Kunigal, and Tumkur Road are likely to see the most appreciation in property values due to their proximity to the airport.
Investing now can be beneficial, as property prices are expected to rise once the airport opens and demand increases.
Residential developments, commercial spaces, and land acquisitions near the airport are expected to be highly sought after as the area grows.
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