Real estate and infrastructure growth have been intricately connected throughout history. The development of ports, railway stations, and suburban systems has been instrumental in driving urban expansion. In the past, the presence of these transportation hubs has spurred significant commercial activities, leading to the rapid growth of townships and cities in their vicinity.
In the present day, airports fulfill a similar role by providing crucial institutional support to attract businesses, investors, corporations, and public sector entities. According to a recent report by 360 Realtors, modern airports serve as gateways to regions and enable the phased development of surrounding localities. They create favorable conditions for economic growth and act as catalysts for real estate and infrastructure development in their vicinity.
Ankit Kansal, Managing Director of 360 Realtors, emphasizes the significant role that airports play in the growth of contemporary Indian cities. He highlights that airports serve as crucial connectors between infrastructure, travel, tourism, and commercial advancement. By seamlessly linking a region both nationally and internationally, airports attract attention and interest from investors. Moreover, airports draw the focus of local municipal and urban development bodies, encouraging them to enhance the surrounding infrastructure for further progress.
The report provides several examples, such as Devenahalli (Bangalore), Shamshabad (Hyderabad), and Sindhurg (North Goa), to illustrate how airports can bring about a monumental shift in the growth and development of a region. Devenahalli serves as a compelling case study. Previously a Taluka located 40 km from Bangalore's city center in the early 2000s, it has now become the most sought-after residential and commercial destination in the city, thanks to the presence of the airport. Property prices in Devenahalli have witnessed a remarkable increase, with an average jump of 253.7% between 2012 and 2022. This upward trend is expected to continue, with property prices predicted to reach Rs 10,350 per square foot by 2027.
Furthermore, the airport in Devenahalli has spurred major infrastructure developments in the area, including aerospace parks, business and IT parks, 5-star hotels, shopping malls, and exhibition centers. As a result, prominent IT, aerospace, and electronic enterprises have established their presence near the airport, further driving economic growth and employment opportunities in the region.
Shamshabad, a village located in the southeast of Hyderabad, has undergone a remarkable transformation. The opening of the Rajeev Gandhi International Airport (RGIA) has turned Shamshabad into a thriving and upscale destination. Formerly a small village, it now boasts modern hotels, housing complexes, retail zones, conventions, and commercial complexes. The growth has been phenomenal, with property prices skyrocketing by 780% between 2008 and 2022, according to a report by 360 Realtors. Currently priced at Rs 6150 per square foot, the property prices are projected to reach Rs 9947 per square foot by 2027.
The future of airport development in India looks promising, with 129 greenfield airports already in operation and an additional 60-70 airports scheduled to be established by 2040. This expansion presents significant opportunities for real estate developers. In the short term, attention will primarily be focused on Purandar in Pune, Navi Mumbai International Airport in the Mumbai Metropolitan Region, Mandi Airport in Himachal Pradesh, Kota Airport in Rajasthan, Jewar International Airport in Greater Noida, and MOPA Airport in Sindhudurg. These airports are expected to drive economic growth and spur real estate development in their respective regions.
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