After Madras International Meenambakkam Airport, Chennai is all set to get a second airport soon. And, it comes as no surprise that this airport will have a significant impact on the real estate market. Airports always prove to be advantageous for cities because they offer a boost to real estate development and overall economic activities.
Airports improve business activity and hence, a more considerable demand for the commercial real estate market. The housing market and commercial activity in a city are closely related; a business gives rise to employment opportunities, and employment boost purchasing capacity, and so it increases. Moreover, it increases the demand for houses for the workforce.
Overview of Chennai's Second Airport
Chennai will soon have a second airport, i.e., Parandur Airport or Pannur Airport. Initially, the Tamil Nadu government had suggested Parandur, Pannur, Padalam, and Tiruporur as the possible sites for Chennai's second airport. However, later the ministry studied the proposed sites and opted for Parandur and Pannur. Both these locations are less than a 30 km drive from Sunguvarchatiram and Sriperumbudur.
The State and Central Government of Tamil Nadu are considering a second airport in Chennai by 2035. For the second greenfield airport in Chennai, a handful of locations have been shortlisted, which involves Parandur near Sunguvarchatram. This new airport will require approximately 4500 acres of land and will be developed as an aero city.
Besides this, the airport will have all the facilities required for aircraft maintenance and will have space for units to make auxiliary items. There are chances that cargo operations could be moved here once the airport becomes operational.
As per the latest reports, Chennai will finally get the second airport in Parandhur in the Kancheepuram district. This proposed airport site is only 60 km away from Chennai's first airport. This proposed airport is likely to reduce the overcrowding of people in Meenambakkam airport. Apart from this, the PPP model is likely to be executed in constructing this entire project, where PPP stands for Public-Private Partnership. This means that funding and management of the airport project will be from both public partners, i.e., the government and a private corporation.
The local services like nearby hotels, transport facilities, and residential properties in proximity will see tremendous growth of development within the range of the new airport. This will ultimately be an excellent expansion activity in Chennai.
Impact of Chennai's Second Airport on the Real Estate Market
Without any doubt, improved connectivity in a city will definitely boost its real estate prospects. In other words, with the introduction of a new airport in Chennai, the city's image as a business destination will improve, leading to increasing demand for commercial space in Chennai. Not only commercial space but the city will witness a hike in residential real estate in the city and nearby regions.
To be more precise, the introduction of the second airport in Chennai will have a two-fold impact on the city's real estate market:
1. At first, it will increase the viability of Chennai as a destination for business. In turn, this will increase interest because more and more domestic and international companies will start operations in the city and expand their existing businesses. Moreover, this will have an exponential effect on the residential real estate market of Chennai as well.
2. Secondly, the entire real estate profile of Chennai will change because the demand will move toward the areas that are near the airport site. Airports result in massive infrastructure undertakings that produce residential demands from all the employed people and the multiple linked services that exist. Also, there will be a huge demand for top-level housing in locations with good connectivity and ready access to both the new and the old airports of Chennai.
The introduction of a second airport in Chennai is likely to boost the city's real estate development. The presence of a second airport will improve the image of the city as a business destination, thus increasing the demand for commercial real estate. Furthermore, greater commercial activity in the nearby areas will lead to higher employment opportunities that will directly augment the scope of housing development.