Government to Develop Real Estate and Commercial Activities around Airports, Taking Inspiration from Global Hubs
The Civil Aviation Minister, Kinjarapu Ram Mohan Naidu, announced on Saturday that the Government of India plans to conduct a study on developing large-scale real estate and commercial activities around airports. This move comes as the government looks to global hubs such as New York, London, and Hong Kong for inspiration. Speaking at the NAREDCO 17th National Convention in New Delhi, the Minister highlighted the potential of airports to generate significant footfalls and economic activity, which can be leveraged to support associated sectors. He added that the government intends to encourage the creation of skyscrapers, hotels, and convention centers in the vicinity of airports to maximize their economic potential.
Taking Cues from Global Examples
Minister Naidu pointed out that airports in cities like New York, London, and Hong Kong operate at high economies of scale, with multiple associated activities including real estate development. The Indian government plans to learn from these examples and develop similar utilities around new greenfield airports. With the goal of expanding the country’s aviation infrastructure, the government expects to add hundreds of new airports in the coming years. In recent times, 88 airports have already been made operational, with several more projects underway.
Opportunities for Collaboration and Growth
The Minister also highlighted opportunities for collaboration with members of NAREDCO, urging them to actively participate in building the new capital city of Amravati in Andhra Pradesh. The city is envisioned to be a smart city with world-class infrastructure. Kuldip Narayan, Joint Secretary of the Ministry of Housing and Urban Affairs, emphasized the need to scale up annual housing delivery from 4-5 lakh to 40-50 lakh units. He also stressed the importance of institutional funding mechanisms such as Real Estate Investment Trusts (REITs) and HUDCO. He called for innovative approaches to affordable housing management.
Support from Industry Leaders
G Hari Babu, President of NAREDCO, assured the Minister of the industry’s support in contributing to Amravati’s development. Dr.Niranjan Hiranandani, Chairman of NAREDCO, emphasized the need for the growth of the real estate sector to align with national priorities. He expects industry players to deliver accordingly to support the country’s economic growth.
Looking Ahead to Future Economic Growth
The Minister reiterated that the government’s civil aviation strategy, along with integrated real estate development, will play a crucial role in driving future economic growth. With the government’s focus on developing airports and surrounding areas, the real estate and commercial sectors are expected to see significant growth and contribute to the country’s overall progress.