India Draws Development Lessons from World's Leading Airports to Boost Real Estate

Civil Aviation Minister K Rammohan Naidu on Saturday said that a study is being undertaken to draw development lessons from leading global airports such as those in New York, London, and Hong Kong. The objective is to ensure large-scale economic activities around upcoming airports in India.

The Centre, he added, would make concerted efforts to boost real estate activities in the vicinity of new and upcoming airports to achieve a sectoral growth target of 15 per cent in the near future.

Addressing the second day of the 17th National Convention of NAREDCO in the national capital, the Minister stressed that airports attract huge footfalls not only for travel and recreation but also for diverse economic activities in their surrounding areas. Therefore, the Government aims to encourage the development of convention centres and hotels near such hubs to maximize economic benefits.

Naidu pointed out that airports in New York, London, and Hong Kong operate at very high economies of scale with multiple allied activities, including real estate development. India, he said, will take inspiration from these models to develop similar facilities around its upcoming greenfield airports.

Highlighting the sector’s growth potential, the Minister said the Government plans to add hundreds of airports to the country’s civil aviation network. In recent years, 88 airports have already been operationalized, with many more in the pipeline.

“Since I come from Andhra Pradesh, I would like NAREDCO members to proactively participate in building the new capital, Amaravati, which will be a world-class smart city with the highest standards of infrastructure and facilities,” Naidu said.

Earlier, Kuldip Narayan, Joint Secretary in the Ministry of Housing and Urban Affairs, urged real estate developers to scale up their vision from constructing 4–5 lakh houses annually to 40–50 lakh, so that the housing and real estate sector can grow substantially and contribute meaningfully to national GDP.

He further suggested that funding for such projects should increasingly come from institutional arrangements such as Real Estate Investment Trusts (REITs) and HUDCO. The major challenge ahead, he said, would be managing housing—particularly affordable housing—through innovative models that move beyond traditional retail loans.

In his welcome remarks, G. Hari Babu, President of NAREDCO, assured the Minister that the organization would fully support and participate in building the proposed Amaravati capital city in close cooperation with the Government of Andhra Pradesh.

Niranjan Hiranandani, Chairman of NAREDCO, emphasized that the growth of the real estate sector must remain aligned with national priorities, and the industry must rise to meet those expectations.

The two-day 17th NAREDCO National Convention, themed “India Builds: Reimagining Growth through Real Estate and Infrastructure,” brought together policymakers, industry leaders, economists, and stakeholders from across the country.