Airport-Adjacent Markets Drive Real Estate Growth: Square Yards Report

Square Yards' report highlights the significant rise in property values in airport-adjacent micro-markets, outpacing city-wide growth in North Bengaluru, South Hyderabad, Panvel, and Yamuna Expressway.

Real EstateProperty PricesAirport DevelopmentMicromarketsUrban GrowthReal EstateJul 16, 2025

Airport-Adjacent Markets Drive Real Estate Growth: Square Yards Report

Real Estate:India’s airport-adjacent residential micro-markets are experiencing an unprecedented boom, with property prices rising significantly faster than city-wide averages.

According to Square Yards’ newly released report, JET SET GROWTH: Airports Fuelling Property Market Expansion in India, regions such as North Bengaluru, South Hyderabad, Panvel Region, and Yamuna Expressway recorded apartment price increases between 69% and 90%, while residential plot values surged by 84% to 118% between fiscal year 2021 (FY21) and FY25.

Here is a comparison of average price rates for apartments in FY25 across metro cities:

| Name of Airport & City | Name of Airport-Led Micro-market | FY 21 Property Price (Rs./sq.ft) | FY 25 Property Price (Rs./sq.ft) | FY21–FY25 % change | FY 21 Property Price (Rs./sq.ft) | FY 25 Property Price (Rs./sq.ft) | FY21–FY25 % change |
|------------------------|----------------------------------|----------------------------------|----------------------------------|--------------------|----------------------------------|----------------------------------|--------------------|
| Kempegowda International Airport, Bengaluru | North Bengaluru | 6,000–8,000 | 11,000–13,000 | 69% | 8,500-10,500 | 13,000–15,000 | 48% |
| Rajiv Gandhi International Airport, Hyderabad | South Hyderabad | 3,500–4,500 | 6,000–8,000 | 74% | 5,500-7,500 | 9,000–11,000 | 48% |
| Navi Mumbai International Airport, Navi Mumbai | Panvel Region | 5,900–6,800 | 10,000–12,000 | 74% | 12,700-14,500 | 19,000–21,000 | 45% |
| Noida International Airport, Noida & Greater Noida | Yamuna Expressway | 3,500–4,500 | 7,000–9,000 | 90% | 4,500-6,500 | 9,000–11,000 | 79% |

This explosive growth, far outstripping the corresponding city-wide apartment appreciation range of 45%–79% and plot value growth of 45%–93%, underscores the powerful role airports play in shaping real estate markets. The report presents compelling data-backed evidence on how enhanced air connectivity, infrastructure upgrades, and the promise of future accessibility have turned airport-centric areas into investment magnets.

“Airports are among the most influential enablers of economic growth, urban transformation, and real estate development,” said Tanuj Shori, CEO & Founder, Square Yards. “This impact is even more visible in micro-markets located near airports. As outlined in our latest report, areas like North Bengaluru and South Hyderabad have consistently recorded stronger property price appreciation than their regional peers.”

Bengaluru | North Bengaluru – Kempegowda International Airport

One of the standout performers in the report is North Bengaluru, home to the Kempegowda International Airport. Apartment rates here climbed to ₹11,000–13,000 per sq.ft, marking a 69% growth over four years, compared to 48% growth in the rest of Bengaluru.

Plot prices in the region saw a phenomenal 118% rise, reaching ₹68,000–72,000 per sq.yd, far ahead of the 93% growth seen elsewhere in the city.

The transformation of this once peripheral zone has been remarkable. “Take Bengaluru, for instance. Its northern outskirts were once seen as too remote by many residents. Today, that same area has transformed into a thriving real estate hotspot, driven by rapid infrastructure upgrades and soaring residential demand,” Shori noted.

Hyderabad | South Hyderabad – Rajiv Gandhi International Airport

Hyderabad’s southern corridor, powered by the Rajiv Gandhi International Airport, followed a similar trajectory. Apartments here appreciated 74%, now priced between ₹6,000–8,000 per sq.ft, versus 48% growth in the rest of the city. Meanwhile, plots rose 84%, reaching ₹55,000–60,000 per sq.yd, compared to 59% elsewhere.

The report highlights how the proximity premium continues to widen in this corridor. “Property prices for both apartments and plots have risen more sharply in areas near the airport compared to other established and matured parts of the city,” Shori said.

Navi Mumbai | Panvel Region – Navi Mumbai International Airport

In Navi Mumbai, anticipation around the soon-to-be-operational Navi Mumbai International Airport has sparked a strong uptick in property activity. Apartment rates in the Panvel region surged 74% to reach ₹10,000–12,000 per sq.ft, while plot prices grew 93% to ₹80,000–85,000 per sq.yd.

Interestingly, the rest of Navi Mumbai commands higher base prices — ₹19,000–21,000 per sq.ft for apartments and ₹1,10,000–1,30,000 per sq.yd for plots — but growth rates are relatively subdued at 45% and 58%, respectively.

This showcases how upcoming airport infrastructure can attract both end-users and investors even before the first commercial flight takes off.

Noida & Greater Noida | Yamuna Expressway – Noida International Airport (Jewar)

Perhaps the most dynamic real estate activity is being seen along the Yamuna Expressway corridor, which will soon host the Noida International Airport at Jewar. Apartment prices jumped 90%, reaching ₹7,000–9,000 per sq.ft, while plot rates increased 94%, now at ₹65,000–70,000 per sq.yd.

While city-wide rates in the Noida-Greater Noida region also performed well — with apartments appreciating 79% and plots 45% — the Yamuna Expressway corridor clearly outpaced its peers.

“Large-scale greenfield projects such as the Noida International Airport and Navi Mumbai International Airport are already showing strong growth momentum in surrounding residential real estate markets. Demand is rising even before the first flight takes off,” the report states.

The Broader Picture: Aviation as a Real Estate Multiplier

India’s airport infrastructure is rapidly expanding. According to the Airports Authority of India, the country now has 140 operational airports, up from 77 a decade ago. Air passenger traffic has more than doubled in that time — reaching 412 million in FY25, from 190 million in FY15.

“Airports in Delhi, Mumbai, Bengaluru, and Hyderabad collectively account for around 50% of the country’s air passenger traffic. It is no coincidence that these metropolitan areas are also among the largest and fastest-growing residential markets in India,” the report observes.

This trend is only set to accelerate. Under the Viksit Bharat @2047 vision, India plans to increase its total airport count to 300 and handle nearly 3 billion passengers annually by 2047. This makes airport-led growth a key pillar in the country’s urbanisation and economic blueprint.

Rise of the Aerotropolis

The Square Yards report also points to the emergence of the “aerotropolis” model — where airports function as central hubs for integrated development.

“Their development triggers a chain reaction where increased connectivity fuels commerce, boosts tourism, and generates employment — all of which contribute to higher disposable incomes and urban expansion,” the report says.

As a result, areas around airports are fast evolving into self-sustaining ecosystems, integrating residential zones with commercial offices, logistics hubs, hospitality, and retail.

Tier II and III Cities: The Next Wave

While major metro markets have reaped the early benefits, Tier II and Tier III cities are now entering the fray. With new or upgraded airports coming up in places like Surat, Varanasi, Vijayawada, and Mopa (Goa), these regions are gaining traction among both developers and homebuyers.

“As these emerging cities become better connected, they are evolving into new economic corridors, drawing in industries, talent, and capital,” the report states.

Outlook: Long-Term Real Estate Growth Anchored by Connectivity

The JET SET GROWTH report leaves little doubt that India’s future real estate hotspots will be defined by connectivity, infrastructure investment, and access to global gateways.

“This scale of growth represents far more than an upgrade in connectivity — it is a long-term opportunity to shape the future of India’s cities,” Shori remarked. “As airport networks expand and supporting infrastructure follows, the surrounding property markets are set to flourish, positioning developers, investors, and end-users to benefit from long-term capital appreciation and market expansion.”

With India's real estate sector closely tracking the country's ambitious aviation roadmap, the jet-fuelled boom in airport-led micro-markets may just be getting started.

Frequently Asked Questions

What are the top-performing real estate micro-markets near airports in India?

The top-performing real estate micro-markets near airports in India include North Bengaluru, South Hyderabad, Panvel Region, and Yamuna Expressway. These areas have seen significant property price increases and plot value surges between FY21 and FY25.

How much have property prices increased in these micro-markets?

Property prices in these micro-markets have increased between 69% and 90% for apartments and 84% to 118% for residential plots between FY21 and FY25, outpacing city-wide growth.

What factors contribute to the growth in airport-adjacent real estate markets?

Enhanced air connectivity, infrastructure upgrades, and the promise of future accessibility are key factors contributing to the growth in airport-adjacent real estate markets. These areas are becoming integrated hubs with residential, commercial, and retail developments.

What is the 'aerotropolis' model mentioned in the report?

The 'aerotropolis' model refers to the development of areas around airports into self-sustaining ecosystems. These areas integrate residential zones with commercial offices, logistics hubs, hospitality, and retail, driven by increased connectivity and economic activity.

What is the outlook for real estate growth in Tier II and III cities with new airports?

The outlook for real estate growth in Tier II and III cities with new or upgraded airports is positive. These regions are gaining traction among developers and homebuyers as they become better connected, drawing in industries, talent, and capital.