Upcoming airports in India that will impact real estate

[ecis2016.org] We examine some of the upcoming airports in India that could transform the real estate market in tier-2 and tier-3 cities

In April 2017, prime minister Narendra Modi launched UDAN (Ude Desh ka Aam Naagrik), a regional airport development scheme, aimed at boosting connectivity to remote areas of the country and making air travel affordable for everyone. The idea was to develop 100 new airports in India, out of which 70 would be developed at new locations, while the remaining ones would lift the burden on the existing ones in big cities. These upcoming airports in India were also seen as opportunities to fuel economic development in tier-2 and tier-3 cities, which would boost real estate development, as well.

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Here is a list of the upcoming and under-development airports in India which could turn out to be game-changers for the real estate sector in India.

Jewar Airport, Noida

Coming up in the suburbs of the national capital, New Delhi, the greenfield Jewar Airport will be India’s biggest airport, in terms of the number of runways. Spread over an area of 1,334 hectares, the Noida International Airport is being constructed at a cost of Rs 29,560 crores. The first phase is expected to open by 2022-23 and will have six runways at the end of the fourth phase. The Jewar International Airport is expected to reduce the high passenger traffic at Indira Gandhi International Airport, which is currently on the verge of saturation. To boost connectivity till the airport, a rapid metro will be constructed between both the airports.

Purandar Airport, Pune

To take some of the load from the Lohegaon Airport in Pune, the Maharashtra government announced the construction of the Chhatrapati Sambhaji Raje International Airport in 2016, in Purandar, 40 kms away from Pune. However, land acquisition for the Purandar Airport has created some resentment in the villages where the new airport is slated to come up. Now, according to the recent media reports, the government is considering alternative sites for the airport’s construction, which is expected to further delay the entire project. The total cost involved is pegged at Rs 6,000 crores. The alternative sites being considered are Pandeshwar, Rise and Pise villages in Purandar taluka.

Orvakal Airport, Kurnool, Andhra Pradesh

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The Orvakal Greenfield Airport was inaugurated in January 2019. The airport was supposed to operate commercial flights from 2013 but the project got delayed by six years. The new airport benefits the industrial and tourism sectors of Kurnool, Nandyal and Srisailam. The airport is spread over an area of 639 acres, but no commercial flight operation is allowed yet, as the license is still pending.

Mopa Airport, Goa

This is another under-construction greenfield airport, coming up in Goa. Being built at an expense of Rs 3,000 crores, the airport will come up in four phases. The new airport will reduce the load on the existing Dabolim Airport. The first phase will be completed by 2022 and will cater to 4.4 million passengers. The new airport, when fully operational, will handle 13.1 million passengers.

Sindhudurg Airport, Maharashtra

Also known as Chipi Airport, this airport is located in Sindhudurg, around 27 kms from the Mumbai-Goa highway. The airport was inaugurated in March 2019 by the Maharashtra CM. The airport lies close to some of the popular tourist sites in the state including Tarkali Beach and Sindhudurg Fort. Commercial operations have begun and currently Air India operates flights from here, handling 400 passengers in a day.

Kalyani Airport, Kolkata

To cut load on Kolkata’s Netaji Subhash Chandra Bose International Airport, the state government of West Bengal is considering building a second airport in Kalyani. Around 1,500 acres of land will be acquired in the area, to construct the new airport in the city. The new airport will be 45 kms from the Dumdum airport, which currently handles 8.5 million passengers annually.

Holongi Airport, Arunachal Pradesh

Also known as the Itanagar Airport, Holongi Airport is a greenfield airport in India coming up at a distance of 14 kms from Itanagar. To be built over an area of 320 hectares, the airport will be constructed at an expense of Rs 1,200 crores. The Holongi Airport will have better infrastructure, larger runway and better topography than Pakyong Airport in Sikkim. There are chances that international flight operations may be permitted here, depending upon the demand.

Rajkot Airport, Gujarat

This is another greenfield airport coming up at Hirasar, near the National Highway-8B, which connects Ahmedabad with Rajkot. Currently, it has been planned as a single-runway airport but will be capable of handling Airbus A320 type of aircrafts. The contract for the airport’s development has been awarded to Dilip Buildcon and will take around five years to complete. Currently, Rajkot has a small airport which is incapable of handling big aircrafts due to the small runway.

Navi Mumbai International Airport, Maharashtra

Coming up in close proximity to the financial hub of Mumbai, the Navi Mumbai International Airport will be located in Panvel. This will be the second international airport that will cater to the Mumbai Metropolitan Region (MMR). When fully functional, the Navi Mumbai Airport will cater to 90 million passengers annually. The airport is expected to be operational by 2023. The project was first conceived in 1997 but has been delayed excessively due to political and land acquisition hurdles.

Rourkela Airport, Odisha

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Rourkela Airport was planned to boost air connectivity to the city which is known for its steel plant. The airport is already operational as the license for commercial usage was issued in January 2019. Before this, the airfield was used only for the arrival and departure of VIPs. The Airports Authority of India is planning two more airports in the state – at Jeypore and Utkela (Kalahandi). At present, Odisha has two other airports – the Biju Patnaik International Airport in Bhubaneswar and Veer Surendra Sai Airport in Jharsuguda.

Sabarimala Airport, Kerala

Proposed to be built in Kottayam district, the Sabarimala Airport is an upcoming greenfield airport to be built on 2,263 acres of land. Once operational, this will be the fifth airport in the state. The airport will serve thousands of pilgrims, mostly NRIs, visiting the Sabarimala temple. At present, the nearest airport is 136 kms away, in the state capital of Thiruvananthapuram. According to recent media reports, the Kerala government has given its nod to acquire land of Cheruvally estate, for the development of the airport in the area.

Kannur International Airport, Kerala

Located in Kannur town, the Kannur International Airport opened for commercial operations in December 2018. At present, the airport serves more than one million passengers annually but the authorities estimate the number will increase to five million, in the next five years. This is only the second airport in the state to be built on a public-private partnership.

Parandur Airport, Chennai

The centre and state government of Tamil Nadu are considering a second airport in Chennai by 2035. A number of locations have been shortlisted for the second greenfield airport Chennai, which includes Parandur near Sunguvarchatram. The new airport will require around 4,500 acres and will be developed as an aero city. It will have facilities for aircraft maintenance and space for units to make auxiliary items. The aero city will also promote aviation business and hotels. There are chances that cargo operations could be moved here, once the new airport becomes operational.

Impact of new airport projects on real estate

There is no doubt that improved connectivity in a region, boosts its real estate prospects. The airport development scheme is expected to bring a similar change and fuel growth in the Indian economy. Since air connectivity enhances a city’s image as a business destination, the demand for commercial real estate is expected to increase, once these airports are operational. Moreover, better and faster connectivity also encourages tourism, which gives rise to employment opportunities, gradual economic development and higher demand for housing.

List of airports in India

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