Bengaluru Airport City Limited (BACL) is set to transform the area around Kempegowda International Airport (KIA) into a sprawling 45 million square feet commercial and hospitality hub by 2038. This development will prioritise commercial office spaces, with nearly 2 million square feet dedicated to Global Capability Centres (GCCs) by 2026, attracting major corporations and multinational companies. The transit-oriented design, featuring two metro stations within the city, promises a 20% premium in rental rates. Additionally, a 2.5-kilometre underground tunnel is planned to improve connectivity, linking the eastern and western parts of the city and enhancing access from the Whitefield IT corridor. This project aligns with Bengaluru's broader trend of office space expansion, with the city's stock expected to reach 330-340 million square feet by 2030, driven by strong IT and BFSI sectors.
The area surrounding Kempegowda International Airport (KIA) is on track for a significant transformation. Bengaluru Airport City, a new commercial and hospitality hub being developed by Bengaluru Airport City Limited (BACL), is planned to cover a massive 45 million square feet by 2038. This project aims to create a vibrant business district catering to various industries, attracting major corporations and boosting Bengaluru's position as a commercial hub.
The development will prioritise commercial office spaces, targeting major corporations and multinational companies (MNCs). A significant chunk, nearly 2 million square feet, will be dedicated to Global Capability Centres (GCCs) by 2026. These centres support multinational operations across various functions and are expected to attract a significant workforce. BACL is actively in talks with potential tenants to fill these spaces.
Bengaluru Airport City is being designed with a focus on walkability and easy access to public transport. This "transit-oriented development" (TOD) approach is expected to offer a 20% premium in rental rates compared to traditional layouts. Additionally, two metro stations are planned within the city itself, with a total development exceeding 45 million square feet, seamlessly connecting it to other parts of Bengaluru.
To further improve mobility within the massive development and address traffic challenges, BACL is exploring the construction of a 2.5-kilometre underground tunnel. This ambitious project would connect the eastern and western parts of Bengaluru Airport City, particularly benefiting those travelling from the Whitefield IT corridor, a major tech hub in the city. While details remain scarce, this tunnel has the potential to significantly reduce travel time and improve overall connectivity.
This development aligns with a broader trend of office space expansion in Bengaluru. A recent report by CII-CBRE predicts that the city's office space stock will nearly double by 2030, reaching a staggering 330-340 million square feet. This growth is fueled by the city's strong IT and BFSI (banking, financial services, and insurance) sectors, along with the arrival of niche firms in retail, aerospace, and life sciences.
While Bengaluru's real estate market is thriving, there are challenges to address. Experts highlight the need for improved last-mile connectivity, especially in the city's outskirts. By addressing these concerns and continuing to focus on micro-level development, Bengaluru can solidify its position as a leading commercial hub in India, attracting talent and businesses across diverse sectors.
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