The Centre is planning to develop 100 new airports over the next decade under the modified UDAN (Ude Desh ka Aam Nagrik) scheme. The programme will involve an investment of around Rs 30,000 crore, with the focus expected to be on improving air connectivity to smaller cities, remote areas and regions that remain underserved by existing aviation infrastructure.
What does the 100-airport plan entail?
The modified UDAN scheme was approved by the Union Cabinet in March 2026 with a total outlay of Rs 28,840 crore for FY 2026-27 to FY 2035-36. Unlike a plan focused only on constructing new greenfield airports, the programme will develop 100 airports from existing unserved airstrips. The government has earmarked Rs 12,159 crore for airport development over eight years.
The programme also goes beyond airport construction. Around Rs 10,043 crore has been allocated for viability gap funding to support airlines operating regional routes that may not initially be commercially viable. The scheme also provides for operation and maintenance support for around 441 aerodromes, while 200 modern helipads are proposed for hilly, remote, island and aspirational regions.
According to the Civil Aviation Ministry, 663 routes had been operationalised across 95 airports, heliports and water aerodromes by March 2026, carrying more than 16.3 million passengers. Separately, CRISIL Intelligence noted that 79 new airports had been operationalised under UDAN 1.0, taking India’s airport base to 163 in FY2026 from 77 in FY2016.
The stated emphasis on Tier-2 and Tier-3 cities and underserved regions means the next phase of airport-led infrastructure is likely to extend beyond India’s established metropolitan aviation markets.
How will the 100 UDAN airports impact real estate?
The real estate impact is likely to extend beyond the airport itself, particularly along connecting roads, highways and emerging commercial corridors. The land around selected airstrips could see increased investor and developer interest. Demand could rise for residential projects, hotels, serviced apartments and commercial spaces, especially near city centres, industrial areas and major highways.
New airports could also support warehousing, logistics parks, cold-chain facilities, business parks and light industrial units by improving access for businesses. Tourism-focused locations could see additional demand for hotels, holiday homes and retail.
Noida International Airport offers a clear example of this potential. A Square Yards report notes that apartment prices in Jewar rose from around Rs 3,200 per sq ft in 2020 to Rs 9,600 per sq ft in 2025, with prices reaching about Rs 10,500 per sq ft in 2026. The report attributes the sharper price increase after 2023 to heightened activity linked to the airport’s progress.
The airport is also being developed alongside a wider economic ecosystem, including Film City, Electronic City, Fintech City, Medical Device Park and a logistics hub, as well as manufacturing projects. Connectivity is being supported by the Yamuna Expressway, Eastern Peripheral Expressway linkages, freight infrastructure and planned transit links.
The real estate impact of the 100 UDAN airports is likely to be strongest in markets where new air connectivity is supported by highways, rail links, industrial projects, tourism and planned urban expansion. As these infrastructure networks develop, surrounding land and emerging corridors could see greater investor interest, followed by demand for residential, commercial, hospitality and logistics developments.
