Adani bets on airport cities with Rs 20,000 crore investment plan

Adani Airport plans to invest more than Rs 20,000 crore in the first phase of an airport city development programme covering more than 655 acres across six airports in five states, as it seeks to turn its aviation assets into integrated commercial and urban destinations.

The initiative was announced on Thursday by Adani Airport City Ltd (AACL), a wholly-owned subsidiary of Adani Airport Holdings Limited (AAHL), India’s largest private airport operator.

The first phase will see around 22 million square feet of mixed-use infrastructure developed across airports in Mumbai, Navi Mumbai, Ahmedabad, Lucknow, Jaipur and Guwahati.

The company said nearly 70 per cent of the planned investment will be concentrated in Mumbai and Navi Mumbai, where it controls close to 440 acres of land. The focus reflects the importance of the Mumbai Metropolitan Region (MMR) as India’s leading commercial, financial and aviation hub.

AACL said the airport cities will combine hospitality, retail, entertainment, convention and commercial facilities within connected, walkable districts integrated with airports, Metro systems and urban transport networks.

The developments are being designed to allow travellers, businesses and local communities to access hotels, offices, retail outlets, restaurants, entertainment venues and convention centres within a single ecosystem.

Jeet Adani, director, AAHL, said: “Around the world, the most successful airport districts have become centres of commerce, tourism and urban growth. As India’s aviation market expands, airports have an opportunity to create value far beyond aviation. We are creating a network of integrated urban destinations where airports become catalysts for investment, employment, better passenger experiences and the long-term growth of the cities they serve.”

The company said the programme draws inspiration from global airport districts including Singapore’s Changi, Dubai International, Amsterdam’s Schiphol and Seoul’s Incheon, adapting the airport-led development model for India’s growing aviation market.

“These developments are being designed with leading global design and engineering partners and informed by emerging trends in hospitality, retail, workplaces and entertainment,” Mr. Adani added. “Our objective is to create vibrant districts that combine connectivity with experience, generating economic activity, employment and long-term value for the communities around them.”

Unlike conventional real estate projects, the airport city model is centred on connectivity and integrated experiences. The developments are intended to function as extensions of airport ecosystems rather than standalone commercial ventures.

By combining hotels, workplaces, retail, entertainment and convention facilities within master-planned environments, the projects aim to create walkable destinations that support economic activity in surrounding urban areas.

As part of the initiative, AAHL has signed hotel management agreements with IHG Hotels & Resorts for five luxury and premium properties, including the launch of the Kimpton brand in India.

The company is also working with domestic and international partners across hospitality, food and beverage, retail and entertainment.

Sustainability forms a central element of the programme. All airport city projects have secured Leadership in Energy and Environmental Design (LEED) Gold pre-certification from the U.S. Green Building Council (USGBC), reflecting a focus on resource efficiency, sustainable design, walkability and public spaces.

At the launch event on Thursday, AACL honoured its partners involved in master planning and architecture, including Kohn Pedersen Fox (KPF), Benoy and Znera Space. Construction and design partners included Larsen & Toubro (L&T), Tata Projects Ltd and PSP Projects Ltd, while consulting and project management partners included CBRE, JLL and Cushman & Wakefield.