Bangalore, one of India’s fastest-growing metro cities, is set to get a second international airport. As Kempegowda International Airport (KIA) nears capacity, the Karnataka government and the Airports Authority of India (AAI) are actively working on identifying a suitable site for a second airport to serve the expanding urban and commercial demands of the city.
Here’s a deep dive into the latest developments, the shortlisted locations, what this means for infrastructure and real estate, and why now is a strategic time to keep an eye on the areas under consideration.
Where Will Bangalore’s Second Airport be Built?
As of mid-2025, the Karnataka government has shortlisted three primary locations for the second airport:
- Kanakapura Road
- Tumakuru (near Dabaspet)
- Mysuru Road (near Bidadi)
These areas were selected after meeting 15 essential technical criteria laid out by AAI, including proximity to highways, land availability, and minimal airspace conflict with KIA.
An AAI inspection team has completed site visits and is expected to submit a final report on viability and recommendations by the second half of 2025.
Source: The Economic Times
“We have identified three viable locations and are waiting for the AAI’s final feasibility report,” said M.B. Patil, Karnataka’s Minister for Infrastructure Development.
What Changed Since the Earlier Proposal?
The original plan pointed to Nelamangala-Kunigal as the preferred corridor. However, with deeper assessments, the focus shifted to more feasible and strategically placed locations on Kanakapura Road and Tumakuru Road, where land acquisition, connectivity, and future scalability are more favorable.
Infrastructure Boost Around Shortlisted Areas
Each of the shortlisted zones benefits from strong or improving infrastructure:
- Kanakapura Road: Already a growing residential zone with access to NICE Road and the proposed Peripheral Ring Road (PRR).
- Tumakuru Road: National Highway 48 connectivity and presence of industrial corridors like Dabaspet.
- Mysore Road / Bidadi: Existing industrial belt and proximity to the Bengaluru-Mysuru Expressway.
Source: Hindustan Times
Real Estate Implications: Lessons from KIA
When Kempagowda International Airport (KIA) was announced in 2005 and operationalized by 2008, land prices in Devanahalli and North Bangalore grew by 40–86% in the first 10 years, with average annual appreciation between 15–20% in key pockets.
A similar pattern is now anticipated around the second airport’s final site. Even during the proposal stage, investors and developers are already showing interest in land banks and plotted developments.
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Will Land Prices Go Up Near Bangalore’s Second Airport?
Kanakapura Road
- As of 2025, property rates average ₹8,489 per sq. ft., with an annual growth rate of 9.25%.
- Between 2017 and 2022, Kanakapura Road witnessed a cumulative appreciation of ~28%, including a sharp 12.5% surge in 2022 alone.
- Anecdotal insight: “Six months ago, land in Kaggalipura was priced around ₹4,000/sq.ft. Now, it’s nearing ₹5,000/sq.ft.” said a local investor.
Tumakuru Road
- Over the past 3 years, Tumakuru Road clocked a staggering 112.6% price growth, and 154.7% over 5 years.
- Despite a recent correction of ~22% YoY, analysts suggest this is a short-term dip in an otherwise upward trend.
- Future outlook remains strong, with projected total returns of 25%, driven by planned industrial projects like the NIMZ (National Investment and Manufacturing Zone).
These trends signal strong market confidence and speculative momentum around the proposed airport zones—mirroring the early-stage patterns seen in North Bangalore before KIA took off.
Source: The Hindu
Investment Opportunities Near Bangalore Upcoming Airport
The upcoming second international airport near Nelamangala presents a unique landscape of investment opportunities in the Bangalore real estate market.
As the project approaches its conclusion, potential investors should consider the following key areas for capitalising on growth:
Residential Developments
With the anticipated influx of residents due to the airport’s proximity, investing in residential projects can yield significant returns. Areas like Nelamangala, Kunigal, and those along Tumkur Road are expected to see increased demand for housing. Developers and investors can explore options for gated communities, apartments, and affordable housing to meet this rising need.
Commercial Real Estate
The airport is likely to attract businesses ranging from logistics and hospitality to retail and service industries. So, areas surrounding the airport and key transit routes like Tumkur Road will be prime locations for commercial properties. Investing in office spaces, warehouses, and retail outlets can provide lucrative opportunities as the local economy grows.
Land Acquisition
Purchasing land in strategic locations near the airport can be a smart long-term investment. As the area develops, land values are expected to be appreciated. Investors should consider acquiring plots in Nelamangala, Kunigal, and nearby villages before prices escalate due to heightened demand.
Infrastructure Projects
The new airport will necessitate significant infrastructure improvements, including roads, public transport, and utilities. Also, companies involved in construction, engineering, and logistics will find opportunities to partner with government agencies and private developers. Investing in infrastructure-related businesses can provide substantial returns as demand increases.
Hospitality Sector
With an influx of travellers and business professionals, the hospitality sector is poised for growth. Opportunities exist for hotel developments, serviced apartments, and vacation rentals in proximity to the airport. Investors should consider targeting markets that cater to both business and leisure travellers, tapping into this expanding customer base.
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What Should Buyers and Investors Do?
- Don’t speculate blindly: Wait for the final AAI location confirmation before making large-scale purchases.
- Look for early-stage opportunities: Focus on infrastructure projects near shortlisted zones.
- Track developer movement: Builders entering these corridors are often early indicators of price movement.
Whether you’re a homebuyer seeking long-term value or an investor watching for appreciation, Bangalore’s second airport project is one of the top infrastructure triggers to monitor in 2025.
Also Read: Most Expensive Land Price in India in 2025
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Conclusion
As Bangalore prepares for its new airport, the potential for growth in property prices is substantial. This development will not only enhance connectivity but also attract businesses and residents, creating a thriving real estate market. Investors should act strategically to capitalise on these emerging opportunities.
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Frequently Asked Questions
To accommodate rapidly growing air traffic—currently over 41 million passengers at KIA with a 12–14% annual growth—Bengaluru will face capacity issues by 2035. The new airport is essential to meet future demand and enhance connectivity
The Karnataka government has narrowed the choice to three locations:
– Kanakapura Road (two parcels in Bangalore Urban and Ramanagara districts)
– Tumakuru Road (near Dabaspet)
– Mysuru Road (near Bidadi/Solur)
The AAI has finished inspections at all shortlisted sites and is expected to submit its feasibility report by mid to late 2025, paving the way for a final site decision soon after .
Approximately 4,500–5,000 acres are needed to build a full-fledged international airport capable of serving up to 100 million passengers annually
Post-finalization (likely late 2025), the new airport could see phased construction starting in 2026, with completion timelines depending on land acquisition and approvals
Each site benefits from existing or planned infrastructure:
Kanakapura: NICE Ring Road, PRR access, and potential metro extension
Tumakuru: NH 48 connectivity with industrial growth near Dabaspet
Mysuru/Bidadi: Bengaluru–Mysuru Expressway, making it a suburban residential hub
Yes, there is political tug-of-war over regional preference, with some critics accusing local leaders of bias. Experts are urging that the final choice be technically driven, not politically motivated
No. A legal clause prohibits another airport within 150 km of KIA until 2033, so the second airport will be fully complementary and located well beyond that buffer
The second airport is intended to serve up to 100 million passengers/year—more than double KIA’s current load—supporting long-term aviation needs in South India
Land prices around shortlisted corridors—particularly Kanakapura, Tumakuru, and Mysuru Roads—are already on the rise. Early investor interest, projected as 25–30% returns, mirrors the real estate surge witnessed around North Bengaluru post-KIA .
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