Bhogapuram International Airport : Transforming Andhra Pradesh Real Estate and Infrastructure


Bhogapuram International Airport, now officially known as Alluri Sitarama Raju International Airport, is nearing completion and set to transform both connectivity and the real estate landscape in Andhra Pradesh. Slated for operational readiness by December 2025 (with some official projections extending to June 2026), this ambitious greenfield project is already attracting massive investments in adjoining land and prompting hotel and infrastructure development by major players such as the Tata Group, GMR Group, and leading hospitality brands. For anyone interested in “Andhra Pradesh real estate” or tracking “upcoming projects in Andhra Pradesh,” the unfolding story of Bhogapuram is unmissable.


Overview and Project Scope

Located in Vizianagaram district, near Visakhapatnam, Bhogapuram International Airport is envisioned as a major aviation gateway for coastal Andhra Pradesh and its urban-industrial corridor. The airport is being built by GMR Airports Limited and will be developed in three phases. Phase 1 is designed for a capacity of 6.3 million passengers per annum (MPPA), scaling up to 12 million in Phase 2 and ultimately 18 million in Phase 3 over the coming decade.


Key Project Features

·         Airside Infrastructure: India’s longest runway at 3.8 km can handle the largest aircraft and future air traffic growth.


·         Terminal Design: The Phase 1 terminal will handle 6.3 MPPA, with world-class passenger amenities and modern architecture reflecting Andhra’s culture.


·         Connectivity: Major road upgrades and planned metro/rail links connecting Visakhapatnam and the Kakinada–Srikakulam corridor, supporting regional development.


Timeline and Construction Status

·         As of July 2025, the project is over 70% complete: runway and taxiway are nearly finished, while the terminal roofing is at around 60%.

·         The airport is targeting Phase 1 launch between December 2025 and June 2026, having achieved major construction milestones ahead of earlier projections.

·         The airport officially adopted the Alluri Sitarama Raju name in September 2024.


What Makes Bhogapuram Special?

Economic Engine for North Andhra

The airport is considered a “game-changer” for Uttarandhra (North Andhra), catalyzing job creation, logistics, tourism, and residential demand. Estimates suggest tens of thousands of direct and indirect jobs via airport operations, services, and related commercial development.


Real Estate Boom: Land, Hotels, and Infrastructure

The effects on “Andhra Pradesh real estate” are already visible:

·         Land Prices: Proximity to Bhogapuram Airport has triggered sharp land price escalation and increased demand for residential, retail, and hospitality projects in Vizianagaram, Bhimili, and North Visakhapatnam.


·         Major Investors: The Tata Group plans a chain of 20 hotels, including a Taj-branded property, and GMR is developing a ₹500 crore five-star hotel and a ₹150 crore convention center. Both government and private investors are targeting “airport city” models, including logistics parks, business hubs, and township developments.


·         Urban Planning: State authorities and the GMR Group are focusing on well-planned townships, airport-linked business districts, and seamless transport integration. Infrastructure upgrades are planned for roads and mass transit, further boosting long-term real estate values.


Community and Skill Development

A dedicated skill development centre is being established in the region to train locals in airport operations and related commercial activities—further bolstering the airport’s promise of widespread employment and entrepreneurship.


Project Highlights

Category

Details

Location

Bhogapuram, Vizianagaram District, Andhra Pradesh

Developed by

GMR Airports Limited

Phase 1 Capacity

6.3 million passengers/year

Ultimate Capacity

18 million passengers/year (Phase 3)

Runway

3,800 meters (longest in India)

Land area

Approx. 2,200–2,700 acres

Estimated Cost

₹4,592 crore (Phase 1); total ₹7,000+ crore

Major Investors

Tata Group, GMR, Taj Hotels, NIIF

Ancillary Projects

5‑star hotel, convention centre, airport city

Completion Target

December 2025 – June 2026 (Phase 1)

New Name

Alluri Sitarama Raju International Airport


FAQs – Bhogapuram International Airport and Andhra Pradesh Real Estate

Q1. When will Bhogapuram Airport be operational?
A. Latest construction updates indicate the airport will open between December 2025 and June 2026, with over 70% of Phase 1 already completed as of July 2025
.

Q2. What is the passenger handling capacity?
A. Phase 1 will handle up to 6.3 million passengers/year, scaling to 18 million after future phases
.

Q3. How is the airport influencing real estate in Andhra Pradesh?
A. It has triggered a surge in land, residential, and hotel investment near the project area. Major brands like Tata (Taj Hotels) and GMR are building hotels, business parks, and convention centers, with proactive township planning and rising property values
.

Q4. Which areas are benefiting the most from the airport?
A. Vizianagaram, Bhogapuram, Bhimili, and northern Visakhapatnam are seeing the biggest uptick in real estate, with developers acquiring large parcels for premium projects
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Q5. What employment opportunities will the airport create?
A. Thousands of direct jobs in airport operations, security, hospitality, logistics, and ancillary services, plus indirect roles across transport, supply, and allied segments
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Q6. Is there a plan for cargo and airport city ventures?
A. Yes, “airport city” concepts are in planning, including logistics parks, warehousing, retail, and business hubs anchored by airport-led demand

 

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