Bangalores 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 Pensioners Paradise, the city
has also earned the sobriquet of Indias Silicon
City. It may soon turn earn another title of being
Indias 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
Fortune500 companies have operations in Bangalore and it is home to
around 200 Biotech 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), SouthEast Bangalore Electronic
City spread over 440 acres and SarjapurOuter 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,
multistory residential highrises, 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 Singapores Changi Airport.

Amsterdams Schiphol is the worlds 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 NH7 from existing 6lanes to 8lanes,
which can sustain higher traffic due to airport expansion and expected real
estate developments on either sides of the NH7
Bangalore Metro Rail covering a length of around 33 kms spread over the
North South and EastWest 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 201011
In order to ensure fast and easy connectivity from Bangalore City Centre to
the International Airport, HiSpeed 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 Highway7 (NH7) 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
multispeciality 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 Indias 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.

Source: CommonFloor.com
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