Bengaluru's Second Airport Stalls on State Inaction as Property Prices Surge and A-Khata Deadline Extended
Bengaluru is navigating simultaneous pressure across infrastructure, civic governance, and real estate this week. The Airports Authority of India has completed its pre-feasibility study of three candidate sites for a second international airport in the city, yet progress hinges on a formal proposal from the Karnataka state government that has not arrived. At the same time, the Urban Development Department has extended the deadline for a reduced-fee A-khata application process to August 23, even as uptake remains far below the estimated five lakh eligible properties, and the city's average real estate asking price has climbed to approximately Rs 12,100 per square foot.
🏢 Airport Feasibility Study Done, Karnataka Yet to File Formal Proposal
The Airports Authority of India has completed its pre-feasibility study of three shortlisted sites for Bengaluru's second international airport, but the project cannot advance until the Karnataka government submits a formal proposal to the Union government under the Greenfield Airports Policy — a step that, as of late July 2026, has not been taken. The development was disclosed by Minister of State for Civil Aviation Murlidhar Mohol in a reply to an unstarred Lok Sabha question raised by Bengaluru Central MP P C Mohan on July 28, 2026. Mohol confirmed that the pre-feasibility report has been transmitted to the state government, but that no formal application has been received from either the Karnataka government or any private airport developer. The backdrop for the second airport proposal is Kempegowda International Airport's projected growth trajectory. KIA currently operates with an annual passenger handling capacity of 51.5 million passengers per annum. A Phase 2 expansion of Terminal 2 will scale that terminal's capacity from 25 MPPA to 45 MPPA, with KIA's total handling capacity projected to reach 80 MPPA by August 2030. In the meantime, daily average footfall at KIA stood at 1.23 lakh passengers during FY 2026-27 through June 2026, reflecting the steady growth in air travel demand that underpins the case for a second facility. Until Karnataka files the required formal application under the Greenfield Airports Policy, the second airport project remains in a holding pattern despite the completion of the AAI's preliminary planning work. [3]
🗳️ A-Khata Fee Relief Deadline Extended to August 23 Amid Low Uptake
The Urban Development Department of Karnataka has extended the deadline for its reduced-fee A-khata application scheme to August 23, providing property owners within the Greater Bengaluru Authority jurisdiction additional time to apply under the single-site layout approval process. The scheme was established to allow eligible property owners to obtain a fresh A-khata — a foundational property ownership document in Karnataka's land records system — at a reduced cost. Despite the financial incentive built into the scheme, uptake has fallen dramatically short of what authorities anticipated. The Greater Bengaluru Authority estimated that approximately five lakh properties within its jurisdiction are eligible for a fresh A-khata under the arrangement, yet only around 7,000 applications had been received at the time the extension was announced. That gap between the eligible pool and the actual number of applicants suggests that a large proportion of property owners in Bengaluru either remain unaware of the scheme or have not yet prioritized filing their applications. The deadline extension is likely intended to allow time for greater outreach and awareness-building that might close this gap before the window closes on August 23. For property owners in the GBA area who hold qualifying properties under the single-site layout approval framework, the extended deadline represents a continued but time-limited opportunity to regularize their documentation at the reduced fee. Officials have not indicated whether any further extensions beyond August 23 will be made available to applicants. [5]
🏢 Bengaluru Asking Prices Reach Rs 12,100 Per Square Foot as Luxury Segment Dominates
Bengaluru's real estate market has evolved well beyond its origins as primarily an apartment-driven market for technology workers, according to a mid-2026 guide published by karnataka.com on July 24, 2026, authored by Gowri Meenakshi. The city's property sector is now described as one of India's most dynamic, shaped by continued expansion of the technology economy, a fast-growing metro network, and persistent in-migration from across the country. As of mid-2026, the average asking price in Bengaluru stands at approximately Rs 12,100 per square foot, up from roughly Rs 10,950 per square foot recorded in September 2025. Analysts cited in the guide project a further 6 to 10 percent price appreciation over the coming year. Housing sales across Bengaluru rose approximately 15 percent over the past year, pointing to sustained demand. The most striking structural development is the dominance of the luxury segment, defined as homes priced above Rs 1.5 crore. That category now accounts for close to 63 percent of all transactions, a share that signals a significant shift in the composition of buyer activity. The real estate picture in Karnataka extends beyond Bengaluru, with the guide highlighting growing activity in plotted developments along the city's outer corridors and increasingly active markets in Mysuru and Mangaluru. Together, the technology-sector employment base, metro expansion, and ongoing urbanization continue to position Karnataka — and Bengaluru in particular — as one of India's most closely watched property markets heading into the second half of 2026. [6]
Sources: [3] Deccan Herald · [5] The New Indian Express · [6] karnataka.com