Bangalore’s Development as an Aerotropolis With an annual economic growth rate of over 10 per cent, Bangalore is one of the fastest growing cities in Asia. Long known as the Garden City and Pensioner’s Paradise, the city has also earned the sobriquet of India’s Silicon City. It may soon turn earn another title of being India’s first Aerotropolis- a city in which the layout, infrastructure and economy are centered around a major airport. Growth Drivers in Bangalore Bangalore has witnessed tremendous development and growth in the last decade mostly because of the IT and ITeS sectors. Many prominent Fortune‐500 companies have operations in Bangalore and it is home to around 200 Bio‐tech companies. Over the past few years, Bangalore is emerging as one of the major medical tourism destinations in the world due to availability of hospitals of international standards with significant cost advantage. Presently, IT and ITeS companies are concentrated in and around Central Business District, East Bangalore –Whitefield, International Tech Park Bangalore (ITB) developed by Ascendas), South‐East Bangalore – Electronic City spread over 440 acres and Sarjapur‐Outer Ring Road. However, with the Kempegowda International Airport becoming operational near Devanahalli in 2008, a new Aerotropolis may soon emerge with major real estate projects and developments between Bangalore city and Kempegowda International Airport. What is an Aerotropolis? Aerotropolis is a word that is created out of two words – airport, and metropolis. In short, it is an airport township. At its heart there would be an airport, which would be surrounded by residential units, golf courses, hotels, multi‐story residential high‐rises, malls, etc. Experts believe that airports will shape business location and urban development in this century as much as seaports did in the 18th century, railroads in the 19th century and highways in 20th century. Aerotropolises across the world are emerging because of the advantages airports provide in the fast-paced commercial and economic environment. Some of the global airports that have led to flourishing aerotropolises include Amsterdam Schiphol, Frankfurt Airport and Singapore’s Changi Airport.
Amsterdam’s Schiphol is the world’s first properly planned aerotropolis. It is possible to fly into Schiphol, stay a couple of nights and finish business meetings and squeeze in some hours of shopping before catching the flight back home – all this without having to step out of the airport complex. Airport City planned around Bangalore Seven years after it began operation the (KIA) may join this elite club of world-class aerotropolises. It aims to be the nucleus of economic growth for the region by connecting Bangalore to the world and evolving into a Central Business District. The first step towards achieving this will be a concept called ‘Airport City’, a city within a city. Airport city will be much more than a city and will be a rendezvous for people to conduct business, shop, dine and unwind. The Airport City proposed to be developed would spread over 215 acres and witness over a million people live and work in the area. The Bengaluru International Airport Limited (BIAL) envisages the Airport City to be a flourishing destination in itself, wherein people will not only board/alight from flights but also relax, do business and shop. The City would have more hotels complimenting one another, along with destination retail, serviced apartments, office park and a software campus. Infrastructure planned around KIA As the airport is 40 km outside the city, connectivity to the city is imperative for the growth and development of the aerotropolis. Currently, Bangalore Metropolitan Transport Corporation runs eleven bus routes from locations in the city to connect to the airport. The Rs 150-crore six-lane highway from Hebbal to Devanahalli has already linked the airport to the city. The government has planned and proposed the following initiatives to improve connectivity. • NHAI is in the process of widening the NH‐7 from existing 6‐lanes to 8‐lanes, which can sustain higher traffic due to airport expansion and expected real estate developments on either sides of the NH‐7 • Bangalore Metro Rail covering a length of around 33 kms spread over the North‐ South and East‐West Corridors is under construction by Government of Karnataka at an estimated project cost of INR 64 billion (US$ 1.5 billion). The project is expected to be completed by 2010‐11 • In order to ensure fast and easy connectivity from Bangalore City Centre to the International Airport, Hi‐Speed Airport Rail link of around 34 kms from CBD to the Airport is under development, which will enable passengers to reach the Airport around 25 minutes
• Monorail is also planned for development to serve as feeder lines to Metro • A Rs 450-crore expressway between Yelahanka and Hebbal is on the drawing board • The Indian railway authority is also planning to construct a railway terminal at the airport to run a special shuttle from Cantonment railway station to the airport Major Development Projects Devanahalli, with enhanced connectivity, is emerging as a sister city to Bangalore with major investments pouring in for development. The State government has identified the area in Devanahalli taluk where about 10,000 acres of land would be acquired to set up the Information Technology Investment Region (ITIR). Aerospace Park coming up just behind the Kempegowda International Airport (KIA), promises to employ over 10,000 people directly, and another 10,000 indirectly in the next few years. The park with facility for aircraft component manufacturing and accessories will be developed near the airport in 1000 acres area. The state is expecting an investment of Rs 4,000 crore into this park alone and the intent is to make it a maintenance, repair and operations (MRO) hub for Asia. The aerospace park is being located adjacent to a 1,000 acre electronic hardware park and a 1,000 acre software park, which will enable the aerospace industry to leverage the strengths of the IT sector. Devanahalli Business Park (DBP) is expected to attract an investment of $2.2 billion over the next five to seven years. Karnataka State Industrial Investment & Development Corporation Limited (KSIIDC), at the behest of Government of Karnataka, is developing DBP on the site of around 413.65 acres owned by KSIIDC along the National Highway‐7 (NH‐7) and adjoining the northern boundary of Bengaluru International Airport (BIA) near Devanahalli. Once completed, nearly 2.5 lakh people are expected to work or visit the DBP. Among those that have been planned in the park include multi‐speciality hospitals, special economic zones, entertainment area, star hotels and others. Global Financial District will be set up near Devanahalli to promote the State as a global investment destination. Spread over 150 acres, which will also house a residential township. The district would provide specialized services for banks, insurance companies, stock exchanges and others players in the financial services sector.
Bangalore Turf Club located in the heart of the city will be shifted to a new location, Chikkajala in Devanahalli taluk. Bangalore Turf Club with an investment of Rs. 350 crores has been planned to be set up in Devanahalli. Residential Development A slew of infrastructure projects proposed by the government are buoying the market for residential and commercial projects. The areas of Hebbal, Bellary Road, Yelahanka, Dodballapur have witnessed real estate development since the opening of the International airport. The master plan from Bangalore International Airport Area Planning Authority (BIAAPA) has zoned specific areas for residential, commercial and industrial activities. The social infrastructure in the areas is also growing with international schools and hospitals propelling the areas around the airport to turn self-sufficient. A number of IT parks, MNCs and other business offices are also in close vicinity. The location is witnessing expansion in both commercial as well as residential real estate. Right from affordable housing to high-end projects, all kind of residential projects can be seen here. Some of the renowned builders of Bangalore like ZED-BCIL, Sobha, Ozone Group, Prestige Group, Puravankara, Ramky Estates, Nagarjuna have already launched some premium residential projects here. Most of the housing projects comprises of 2 and 3 BHK apartments and villas. Property prices, on an average, range anywhere from Rs 3,000 per sq ft upwards with an appreciation of 10-15 per cent expected annually. Challenges and Future Outlook Even as several infrastructure projects are underway, there could be some major hurdles in the way of Bangalore becoming an aerotropolis. A recent study conducted by Centre for Sustainable Development (CSD) proved the area is not suitable for large-scale developments because of acute water shortage. While Kempegowda International Airport (KIA) uses recycled water with pipelines, other places do not have alternatives to groundwater. Data available with the Department of Mines and Geology shows that the groundwater in Devanahalli is already over-exploited. Apart from water shortage, Bangalore is already battling with haphazard development and limited connectivity. The KIA is about 40 km from Bengaluru but connected only via road. Proposed infrastructure projects such as the Metro rail connectivity and ring-roads are unlikely to be completed before 2020, say experts. This puts a lot of stress on development and if left unfettered, the airport city and aerotropolis may turn into an unplanned extension of Bangalore. Land around the airport is expensive and high FAR cannot be allowed due to aviation norms. The question arises that is it financially viable for developers to come up with residential projects in the area? “Lot of developers are
acquiring land in this corridor and with the allowed FAR, it is imperative for the developers to implement new innovative products with value added services to enable them to charge a premium in order to make the project viable,” says Srinivasan Gopalan, CEO, Ozone Group. Two other cities from South India, Kochi and Hyderabad are also in the run to become India’s first major aerotropolis. Presently, Bangalore has an edge because of its fast paced development and strong growth drivers. Experts believe that for the dream of an aerotropolis to become a reality, the infrastructure and connectivity projects planned around the airport must be completed in the next five to eight years.
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