Can the International Airports be a harbinger of growth?


Airports have always been a harbinger of growth and prosperity for any city or a town. At the first instant they bring enthused and promoted activity in the overall economic fabric of the micro-market of that region. The airport spurts the increased activity in the commercial matrix increasing the demand for commercial real estate. This increases the job opportunities and in turn spawns the purchasing power and surplus income in the hands of the individuals. This influences the individuals to buy properties and the desire for buying houses increases. Not only that, it boosts the necessity for rental housing requirements and there is a whole gamut of real estate activity that is given rise to.
Indiranagar at Old Airport Road Bangalore
This has happened in many cases in the past in many cities and towns of India. Let’s talk about Indiranagar which was a small hamlet in Bangalore twenty five years back. After the airport started operating and the city started expanding in the last two decades the place has become the most posh and expensive area of Bengaluru. How did it happen? It all happened as the IT Parks started near by and the employment generating capacity of the place started increasing. Due to the factor of the airport being in the vicinity, Indiranagar became the destination of many small offices and commercial activity. This in turn gave rise to increased residential activities and this made the place one of the most desired location of the IT capital of India.
The case of proposed Pune International Airport
The experts opine that there is a proposed airport in Pune and the effect on the real estate of it will be two fold. Rajgurunagar which is the proposed location of Pune’s new International Airport is approximately situated at a distance of 40 kilometers to the North of Pune. The location is very near the industrial hubs of places like Chakan, PCMC and Talegaon. The experts feel that after the International Airport is built it will spurt the growth of these areas fourfold. They are already established industrial areas and this building of the airport and once it is operational will help bigger companies and MNCs establish their offices. This will generate extra jobs and there will be a total metamorphosis of the area increasing the real estate activity four times.
Devenahalli at Bangalore
Another vivid example of such an instance of airport is Devenahalli of Bangalore. The place is about 40 kilometers from central Bangalore. The government laid good roads and there after the operation of the International Airport started in Devenahalli and subsequently the adjoining areas have been developing at jet speed. If you look at Devenahalli now, it has transformed from a village to large township with many layouts, domestic housing, residential apartments and the like. There has been ten times more activity that’s increasing every year. Of course there is another reason for this also. The state government has decided and has proposed the Information Technology Investment Region at Devenahalli which is a vast stretch of land meant for IT parks and multinationals to set up their offices. This has led to lot of investors invest in the region along with great real estate activity.
So these are the instances in the recent past that justifies that an airport increases real estate activity and is the harbinger of tremendous growth in the micro-market.

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