Airport lends big lift to investment

Airport lends big lift to investment
REAL ESTATE/ Devanahalli is hot spot as crores pour in
Business Standard

With the Devanahalli international airport attaining financial closure, real estate development in the northern parts of the city is set to boom.

The areas liklely to be impacted are 10 kms from Hebbal flyover on Bellary Road upto 5 kms around the airport project.This is expected to develop as the hottest spot for real estate investment in the city.

Investor interest is gaining and investors are gearing up to pump in crores of rupees near the airport, as can be seen from the Nirvana project undertaken by Metro Corp, along with Jurong Consultants.

According to real estate sources, roucg calculations reveal nearly 2000 to 3000 acres are likely to come up for various developments -- commercial, hospitality, residential, retail and campuses -- in the next 5 years.

Activities likely to take precedence are campus development, high-end residential and quality hotels and retailing in the airport vicinity, said Mayank Saksena, Land & Investment, Chesterton Meghraj Property Consultants.

According to Ashish Singh of Cushman Wakefield, the IT, ITeS and BPO companies located in the south of Bangalore (Hosur and Sarjapur road) and in the central business district (CBD) are looking at Outer Ring Road, around Hebbal flyover, for campus location.

With regard to pricing, property analysts say the northern belt in Bangalore, which commands between Rs 500 and Rs 1000 per square feet at present, is likely to see a doubling in the next 3 to 4 years.

"Investmetn shift is likely to impact the area very much as companies located in the south-east quadrant of the city shift to the north," said Ashish Singh.

For orderly growth, the grovernment has stepped in by creating the Bangalore International Airport Planning Authority (BTAPA). This agency has been authorised to prepare a master plan and monitor orderly growth. The plan prepared by this authority will clearly define land use near the airport.

At present, all developments are taking place as per the master plan. Deals are being worked out and the values are also being determined based on the BIAPA, said Saxena. The BIAPA area has very good access and support infrastructure.

"This mechanism of an authority controling the development is a good move on the government's part, as people can check with the authority and then buy land," said Saksena.

"People in Bangalore will be more dependent on the airport than in traditional cities. A number of IT companies are queuing up to procure/build campuses near the airport as connectivty to the airport is ovital," said Saxena."