Improved infrastructure, especially excellent connectivity, has always spawned large-scale development. Airport expansion plans in the country and the jet-set lifestyle of Indians are set to give realty and employment a shot in the arm.
Flying for work and pleasure has seen a spurt in air passenger traffic in the country. Greenfield airports, green corridors, air ambulances and heli-taxis are addressing a new need for quick-response systems and situations.
The government announced plans to expand airport capacity by more than five times to handle a billion trips a year under the new NextGen Airports for Bharat (NABH) Nirman scheme. In addition to this, underutilised and unused airports in the country are set to take off in a big way under the new Regional Connectivity Scheme.
With the increasing number of blips on the radar, new commercial, residential and social infrastructure development in the areas in close proximity to the airports, and the potential for large-scale employment, are expected to take off in a big way.
“The Union Budget 2018 has recognised infrastructure as a growth driver of the economy.” Such steps are likely to foster a sustainable ecosystem that will promote investment and expedite the development and modernisation of airports and supporting infrastructure. The growth of an airport is a reflection of the growth of the geographic area to which it caters to. With Bengaluru continuing to be one of the fastest growing cities in India, and with its growing economic might, the airport is on the growth path as well. Today, the Kempegowda International Airport, employs around 18,000 people on its campus, including concessionaires, partners, vendors, etc. This is set to at least double with the new infrastructure being developed.
Hari Marar, Managing Director and CEO, Bangalore International Airport Ltd (bial)
“Enhanced airport infrastructure and increased traffic at airports imply economic growth of the region, which in turn, necessitate development of commercial spaces such as offices, retail, hotels, cargo and warehousing, manufacturing and convention centres.” The technology sector generally prefers facilities that are closer to the airport, much like other sectors including electronics, logistics (high-value cargo and perishable cargo), aviation and ancillary industry, and hotels. The ease of access to other cities and good physical infrastructure due to planned connectivity provides the much-needed thrust to the commercial real estate activity in the vicinity, including, but not limited to office, retail, hotels, logistics, convention centres, etc. The physical infrastructure like Metro Rail, new roads and signal-free corridors will also catalyse the growth of residential realty in the primary and secondary catchment areas of airports.
Shrinivas Rao, CEO-APAC, vestian
“Airports are key influential transport infrastructure in the transformation of the metropolitan area.” The upgrade or development of new airports in a location stimulates the corresponding micro-market to take on many features of the city’s Central Business District (CBD) and establish themselves as new regional development hubs. Airports have now become new dynamic centres of economic activity. In our opinion, the employment boost caused by airport development or an upgrade could be a result of incorporation of several commercial and entertainment services inside passenger terminals. It has always been a two-way cause-and-effect relationship between an airport and related economic development of the city, and especially the surrounding micro-markets. For example, economic expansion of a city can increase airport demand. On the other hand, an increase in airport capacity then again raises productivity and/or demand in other sectors of the economy. In India, the masterplan 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.
Sanjay Chatrath, Executive Director, NCR at Colliers International India
Leena Mudbidri, Times Property, The Times of India, Bengaluru