The Bengaluru Airport City, a commercial and hospitality development hub being developed around Kempegowda International Airport (KIA), will see a development of over 45 million sq ft (msf), Rao Munukutla, the CEO of Bengaluru Airport City Limited (BACL) told Moneycontrol on the sidelines of the Confederation of Indian Industry (CII)-CBRE real estate conference in Bengaluru on July 10.
The BACL is a wholly owned subsidiary of Bangalore International Airport Limited (BIAL) which operates the KIA.
"The development will have majorly commercial office spaces, hospitality and smaller retail development. However, we expect that close to 2 msf of business park --- that majorly consists of Global Capacity Centres (GCCs) to be operational by 2026. We are already in talks with several corporates and MNCs. We are expecting most of the developments to be transit-oriented developments (TOD) --- that already commands 20 percent premium in real estate rentals or market values," Munukutla added.
"The entire 45 msf is set to be complete within 2038," he noted.
TOD is a type of urban development that maximises the amount of residential, business, and leisure space within walking distance of public transport.
Additionally, Munukutla said Bengaluru Airport City will also see two metro stations, which BACL is investing in itself, connecting several parts of Bengaluru to ease mobility.
"We are also planning on a 2.5-km long underground tunnel that will connect the eastern and western parts of Bengaluru Airport City. This will largely help people travelling to the airport from the eastern IT corridor of Whitefield," he added. Munukutla refused to share more details about the upcoming tunnel.
Bengaluru to more than double its office space stock by 2030
The CII-CBRE real estate report released at the conference said that Bengaluru is expected to see 330-340 msf of office space stock, almost 1.5 times the current 223 msf of commercial stock.
Among the upcoming areas for commercial investments include Bellary Road and Yelahanka in North Bengaluru; and Varthur Road and Kadugodi in the east.
In recent years, the city's GCC landscape has diversified beyond its technology and BFSI roots, welcoming niche and specialised firms from retail, aerospace, and life sciences sectors, further solidifying its position as a multifaceted commercial hub.
"More than 40 percent of GCC leasing is based out of Bengaluru and we expect the momentum to continue. However, we need more interventions from the government to solve the last-mile connectivity gaps in the city outskirts. With more focus on micro-level growth, we can see the real estate expand gradually in Bengaluru," Ram Chandnani, managing director of Advisory and Transactions Services at CBRE India told Moneycontrol.
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