Upcoming Airports That Will Be A Game Changer For Real Estate
India owns some state-of-the-art airports and more are on their way to boost the air connectivity between cities and ease congestion in existing airports. Minister of State for Civil Aviation, Jayant Sinha, recently highlighted the government's plans to establish about 100 airports in next 15 years at an estimated cost of Rs 4 lakh crore. Among them, 70 airports will be at new locations while the rest will be second airports or expansion of existing airfields to handle commercial flights.
However, one area which requires government's focus is the thoughtful planning and implementation of such projects. The Indian government has, recently, launched the Regional Air Connectivity Scheme (also known as the UDAN Scheme) which aims at facilitating regional connectivity through financial support and infrastructure development. The Ministry of Civil Aviation (MoCA) has given approval for 18 new airports in the country. They include are Mopa in Goa, Navi Mumbai, Shirdi and Sindhudurg in Maharashtra, Bijapur, Gulbarga, Hasan and Shimoga in Karnataka, Kannur in Kerala, Pakyong in Sikkim, Karaikal in Puducherry, Dholera in Gujarat and Bhogapuram in Andhra Pradesh.
In a report by global consultancy and research firm Centre for Asia Pacific Aviation (CAPA), India's aviation industry will become the third-largest market in the world with regards to departures by 2019, and job creation by 2027. The report also focuses on the apparent saturation likely in existing airports in metro cities and the need to deploy more capacity in Tier-II cities.
According to a KPMG report for Federation of Indian Chambers of Commerce and Industry (FICCI), there are about 414 underserved and unserved airports with 44 airports likely for execution of operations under the scheme and 370 locations being potential destinations for the shortlisted airports.
Update on airport projects
Jewar Airport, Uttar Pradesh
The Greater Noida airport at Jewar, around 60 kilometres from Delhi, will be a landmark project. About 2,378 acres of land has already been acquired to develop the airport. Catering to around 30 to 50 million passengers every year over next 10-15 years, the project will prove to provide easy access for residents of western UP and some cities of Rajasthan and eliminate their dependency on the airport in Delhi for air travel. Plans for providing the area with a Metro connectivity are likely to improve the prospects for investors.
Mopa Airport, Goa
Keeping in view of the rising influx of tourists annually, Chief Minister Manohar Parrikar has said that the existing Dabolim airport will continue to be operational after the proposed international airport at Mopa in North Goa is commissioned. The first phase will be completed by 2020.
Navi Mumbai International Airport, Maharashtra
Spanning over 1,160 hectares at Kopra-Panvel Area of the Mumbai Metropolitan Region (MMR), the project is expected to be operational by 2023 as per Centre for Asia Pacific Aviation. The state government has given a formal approval to GVK-led Mumbai International Airport Pvt. Ltd. (MIAL) for developing the project.
Sabarimala Airport, Kerala
After the airport project proposed by KGS Group in Aranmula was stalled owing to protests by environment groups and local citizens, the Kerala state government has decided to launch a greenfield airport in the Cheruvally estate area in Kanjirappally taluk. The project is aimed at providing smooth air connectivity for commuters (mostly NRIs) from Central Travancore and pilgrims to the Sabarimala Ayyappa temple.
New Vijayawada Amaravati Airport, Andhra Pradesh
An airport has been proposed to serve Andhra Pradesh's new capital city of Amaravati. The state government recently invited the world's renowned airlines, Emirates, for investing in the development of a greenfield airport and MRO facility. Besides Amaravati, sites in Mangalagiri and Thullur are also being considered for the project.
Kannur International Airport, Kerala
Construction of from Kerala's second greenfield airport at Kannur is in full swing with commercial flight operations expected to begin from September 2018. Activities related to the construction of approach roads, state-of-the-art air cargo complex, building for the CISF and office complex for Kannur International Airport Limited (KIAL) are underway.
Airport at Sriperumbudur, Chennai
The centre and state government of Tamil Nadu are in talks over the development of a second airport in Chennai by 2035. As per a study by Centre for Asia Pacific Aviation (CAPA), the city handled 18.4 million passengers in 2016 and is expected to reach its maximum capacity of 23-26 million passengers by 2020.
Durgapur Airport, Kolkata
Kolkata is another major city which is in serious need of a second airport. On request of the Airports Authority of India (AAI) to identify a site for Kolkata's second airport, the state government has suggested Durgapur in south Bengal airport as a possible option. AAI has however turned down the option citing the distance as a reason since the location is nearly 200 km away from the city.
Airport at Itanagar, Arunachal Pradesh
The Arunachal Pradesh state government is yet to receive approval from the centre for development of a greenfield airport in the capital city of Itanagar at Holongi. To be built by the Airports Authority of India (AAI) over an area of 320 hectares, the master plan of the airport has been completed.
Impact of new airport projects on real estate
Development of new airports in any area is likely to boost the city's real estate development. Presence of an airport will enhance city's image as a business destination thus increasing demand for commercial real estate as well. Moreover, greater commercial activity in a locality will mean higher employment opportunities, which directly augments scope for rental housing.