Madhya Pradesh has approved the master plan for the Indore Aerocity Project, an integrated commercial district being developed near Indore Airport. The project will span 11 hectares of land under Scheme 172. It is expected to attract ₹500 crore to ₹600 crore in private investment over the next three to five years.
Located around 500 meters from the passenger terminal, the development is planned as a commercial and hospitality hub with eight to 10 business hotels, corporate offices, IT workspaces, retail areas and residential facilities. The project will also include an international exhibition and convention center through a public-private partnership.
The development aims to strengthen Indore’s position as a regional business and trade hub by bringing hospitality, commercial real estate, and business infrastructure closer to the airport.
How the Indore Development Authority structured Scheme 172
The 11-hectare site along Airport Road has been incorporated into the Indore Development Authority’s Scheme 172. The land was secured through a land-exchange arrangement with the state government, with the site earlier earmarked for corporate technology campuses.
The master plan provides for a mix of commercial, hospitality and residential development. Eight to 10 premium hotels are planned alongside corporate office buildings, IT spaces and retail areas.
An international exhibition and convention center is also part of the plan. The facility is expected to host business conferences, industrial exhibitions and trade events, adding a dedicated business-events infrastructure to the city.
₹52.61 crore public outlay to support private investment
The Indore Development Authority has sanctioned an initial ₹52.61 crore for infrastructure development at the site. The allocation will cover essential infrastructure such as access roads, drainage, electricity, and water supply.
The project is expected to leverage this public investment to attract ₹500 crore to ₹600 crore in investment from private developers, hospitality companies, and other investors. Commercial parcels are expected to be offered through competitive auctions once the basic infrastructure is in place.
The model allows the authority to fund core infrastructure while leaving the development and operation of hotels, offices, and other commercial assets to private players.
Aerocity to improve connectivity with Pithampur
Connectivity is a key component of the Indore Aerocity Project. A 75-meter-wide arterial road is planned to connect the airport terminal with the development over a distance of around 1.5 kilometers.
The project will also connect with the wider 19.6-km economic corridor linking Indore with Pithampur, one of the region’s major industrial and manufacturing centers. The improved road connectivity is expected to reduce travel time between the airport and Pithampur from around 45 minutes to approximately 20 minutes.
The link is expected to benefit businesses operating in the automotive, pharmaceutical, engineering, and other manufacturing sectors in the Pithampur industrial belt.
Why the Indore Aerocity Project matters for real estate
The planned combination of Grade A offices, hotels, retail and exhibition infrastructure could create a new commercial cluster around Airport Road and the Super Corridor.
The development is also expected to increase demand for commercial and hospitality assets in surrounding areas such as Bijalpur, Airport Road and the Super Corridor as infrastructure work progresses.
For businesses, proximity to the airport and improved connectivity with the Pithampur industrial belt could make the area attractive for offices, corporate accommodation, conferences and business travel.
Project expected to roll out over 3–5 years
The Indore Aerocity Project is planned for phased development over the next three to five years. Initial work is expected to focus on site preparation and trunk infrastructure, followed by the auction of commercial parcels to private developers and hospitality operators.
The project is also part of a wider municipal infrastructure program worth ₹365 crore, which includes road and civic infrastructure in neighboring areas. The broader plan includes a four-hectare themed amusement park near Meghdoot Garden.
The Indore Aerocity Project is positioned to add new hospitality, office, and business-event infrastructure to the city. Public funding is being used for core infrastructure, and private capital is expected to drive commercial development. This will strengthen connectivity between Indore Airport and the region’s industrial belt.
