The real estate market has exploded in the post-pandemic era. The corporate market is increasing, increasing demand for commercial space and rental residences. According to industry statistics, in the second quarter of this year, Indian rental home searches climbed 84.4% year on year and 29.4% sequentially. Furthermore, total combined rental housing listings rose 3% quarter on quarter and 28.1% year on year throughout the 13 Indian cities covered. Do not miss The 18% GST on rent gets anticipated to harm the rental housing industry. But, what are the variables that will lead to the rental housing demand boom? Accessibility and cost-effectiveness: When it comes to renting a property, people primarily examine three factors: infrastructure, connection, and price. The property’s location, with ready infrastructure and decent connection, takes precedence over the size and price of the unit. Customers want a home in a prominent location that allows them to maintain a good work-life balance, with less commuting time, easier access to…
After building cities around trading ports for over a century, India is finally exploring Airport cities.
Net Absorption is an important metric to understanding the profitability, sustainability, and stability of an investment in commercial real estate.
An Aerotropolis is a metropolitan region that is situated or constructed around an airport. It is a fusion of the two words aero (aviation) and metropolis. While Aerotropolis may have been a novel idea for Indians, it wasn’t completely unknown, as we have a rich history that is filled with examples of cities and towns developing around local trading centres ( port cities) like Machlipatnam and temple towns like Varanasi. Aerotropolis or Airport cities are just modern-day examples of cities developing around trading centres.
The SujalaamSkycity (Andal Aerotropolis) in Asansol parliamentary constituency was the first Aerotropolis in India. Hyderabad, due to its strategic location, connectivity, economy, infrastructure, governance, and real estate demand is on an assured path to getting recognized as an Aerotropolis city very soon.
History of Airport Cities in India
India is diversifying into becoming the new Aerotropolis hub. There are several reasons for such dramatic changes, a few of which are listed below.
Economic Liberalisation (1991)
As the open skies policy of 1991 led to a substantial increase in air traffic. Years 2006 to 2013 saw the passenger traffic grow by 65% that is up to 159 million. Increasing air traffic requires better infrastructures and also scope to expand the airports to minimize challenges and ensure growth in the sector. Experts believe that this could have been the first spark of Aerotropolis in India.
2. Airport Privatisation
The Airports Authority of India or the AAI had passed an amendment that allowed airports to be owned and operated by private bodies, or follow a Public-Private Partnership model (PPP) model for the development of greenfield airports. These bodies were also permitted to acquire FDI of foreign direct investment for expansion and up-gradation of existing airports.
3. Airport City
While the public and private bodies worked in synchronicity to expand airports and build new infrastructure, it was around this time that they also accepted and adopted the global concept of Airport City or cities situated around an Airport.
Why is India the next Aerotropolis hub?
Aeroteopolis is a very dynamic concept as it does not just aim at increasing business or developing an ecosystem around the airport, but it also aims at connecting other trades and businesses, civilizations, people, and regions. It is a great way of taking one’s culture forward with a modern approach. Aerotropolis or the airport city is an urban development with an airport at the center and aviation-linked businesses growing and flourishing around it. This western concept, while still in its exploration phase, has attracted a lot of investors to work on its greenfield airports of Bangalore, Hyderabad and Kochi.
These are also emerging as great investment hubs and Assetmonk is bringing an investment opportunity within Hyderabad International Airport. As the wealth-tech platform aims at democratizing the investment world and bringing world-class investment opportunities for its clients, you wouldn’t want to miss out on this once-in-a-lifetime opportunity.
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Top 3 Aerotropolis cities in India
GMR Hyderabad Aerospace and Industrial Park
Hyderabad International Airport will soon become an aerospace cluster and an industrial cluster as a part of the international airport. As the city falls into a multi-product Special Economic Zone, we will witness the development of business, healthcare, education and even fun centres all in one place.
Bengaluru International Airport
Bangalore has a strategic location that allows it an opportunity to grow in length and diversify while holding on to its heritage. The growing government and real estate demands of the property are sure to make it the next big Airport Capital of South-East Asia’s Changi International Airport in Singapore and Incheon International Airport located in Seoul, South Korea.
The Kempegowda International Airport is spread over 4000 acres and is located about 30 km north of the city of Bangalore. The Bangalore Airport city will be spread over 530 acres and will enable passengers and visitors to indulge in business and leisure within the Airport vicinity itself.
Indira Gandhi International Airport
With the IGIA at its centre, the Aerocity of Delhi will be seeing a lot of growth and vibrancy. As Aerocity directly connects Delhi, Gurgaon and other major cities, Aerocity can grow as the commercial hub of NCR.
The IGIA is built to provide leisure and luxury to its passengers and also help the business and connections grow.
Infrastructure development is a key driver of the economy. The development of roads, highways and logistics will be an impetus for tourism and business in a city. Airports are becoming the new centres of economic activity making them both a great asset and investment. As airports are a considerable boost to the city area, cities developing around airports or aerotropolis can be the next big hit in India.
According to a 2015 report, 80 airport cities around the world are either fully functional or greatly occupied to make the most of it. Diversification of Indian Airports into aerotropolis will be a big hit.
Aerotropolis Culture in India FAQ's:
Aerotropolis is a metropolitan city that develops and diversifies within and around an airport space.
As an aerotropolis includes a healthcare and education centre all combined, the airport city is just a mini-city situated around an airport.