Taking Off: Real Estate Opportunities Around India’s New Airports!
The Central Government announced the ‘Ude Desh ka Aam Nagrik’ (UDAN) project in 2016 with the goal of fulfilling the ordinary man’s dream of flying and linking Tier-2 and 3 cities with metropolitan cities. The idea comprises charging Rs 2,500 for an hour’s flight by fixed-wing aircraft or Rs 2,500 for a 30-minute helicopter flight covering around 500 kilometres. This programme provides air service on 359 routes that connect 59 airports, 5 heliports, and 2 aerodromes. Following its implementation, the number of operational airports has increased from 74 to 141. As a result, economic advancement and real estate development in the communities surrounding these projects are predicted to skyrocket. Let us look at the most recent updates on some of the new airports in India built under UDAN, and how the project is anticipated to boost the country’s real estate industry.
India’s upcoming and new airports
- Karnataka’s Shivamogga Airport
The project, known as the Kuvempu Airport, is located in Shivamogga, Karnataka’s Malnad area. The lotus-shaped airport, which is now accessible to the public, cost roughly Rs 450 crore to build and has a daily passenger capacity of around 7,200. PM Modi laid the groundwork for the airport project on February 27, 2023, as well as two railway connection projects costing Rs 1,090 crore. The new Shivamogga-Shikaripura-Ranebennur railway line and the Koteganguru railway coaching depot are among them. Furthermore, around Rs 215 crore has been given to several road connection projects, and several infrastructure assignments totaling Rs 2,700 crore are in the works, which included a rail line doubling project in the Londa-Belggavi-Ghataprabha area.
- Noida’s Jewar Airport
An international airport, situated close Noida, is slated to be India’s largest. The airport is expected to cost Rs 29,650 crores. The first phase of Jewar airport is scheduled to begin in 2022-23. This airport has six runways and will share traffic with Delhi’s Indira Gandhi International (IGI) Airport.
- Pune’s Purandar Airport
This airport will absorb the network congestion of Pune’s Lohegaon Airport. It is about 40 kilometres from Pune and is known as the Chhatrapati Sambhaji Raje International Airport. The anticipated project cost is Rs 6,000 crores, with functions set to begin in February 2024.
- Kurnool Orvkal Airport
It was dedicated in 2019 in Andhra Pradesh. It covers 639 acres. This airport has not yet been granted a commercial licence. It will benefit Kurnool, Srisailam, and Nandyal’s tourist and real estate sectors.
- Goa’s Mopa Airport
On December 11, 2022, the first phase of the international airport in Mopa in North Goa was inaugurated. Manohar Parrikar Airport is named after the late Goa Chief Minister. The first phase can accommodate 44 lakh people per year. Mopa airport will be built in four phases and would cost around Rs 3,000 crores. Once the project is completed, the total capacity of the four stages will be 1 crore passengers per year.
Impact on real estate
All of these airports are designed to improve connection to tier II and III cities, which will increase property demand and prices. The suburban areas around metros and big cities will swiftly grow, providing more residential and commercial developments to prospective property purchasers. The construction of new airports in India may also result in macroeconomic development and an improvement in the local people’s financial situation. More significantly, shortened transit time will draw more business to tier-II and III cities, providing a boost to real estate development in these areas.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.