Mumbai Airport T1 Phase-Out: What It Means for Investors in Navi Mumbai

What happened?

Mid-Day reported that the older Terminal 1 at Chhatrapati Shivaji Maharaj International Airport will begin reducing activity from October 25 so it can be rebuilt. The closure will not be sudden. A third of operations will stop first, then two-thirds, and the remainder by January next year, according to the paper's information.

According to Mid-Day, the airlines using that terminal are still deciding whether to take up available slots at Terminal 2. Some have also been offered the choice of moving to Navi Mumbai International Airport. Passengers holding tickets beyond October 25 are to be informed by their airlines if anything changes.

The airport operator, Mumbai International Airport Limited, was quoted by Mid-Day as saying the rebuild had earlier been planned for mid-2025 but was postponed because airlines had nowhere else to operate. With the Navi Mumbai airport now running, it said, an alternative exists inside the metropolitan region. Reconstruction is slated to start in January 2027, and the new terminal is expected in 2029-30. The operator also said it would honour airlines' existing slot rights once that terminal opens.

Which sectors are affected?

• Mumbai airport (CSMIA) and the Vile Parle and Santacruz airport belt
• Navi Mumbai International Airport and Uran-side housing
• Airlines and air passengers
• Residential and commercial real estate in the Mumbai Metropolitan Region

Distance from the projects

Distances as sourced on our research pages.

Potential impact

For housing, the direct effect is probably small and slow. A terminal being rebuilt does not by itself change what homes sell for. What changes is the mix of flights: if some airlines settle at Navi Mumbai rather than returning to the old site, the new airport gains regular traffic. Over several years that could add to the demand case for Navi Mumbai and Uran-side localities, from airline staff, aviation suppliers and frequent flyers who want a shorter trip. Much of that expectation is likely already in prices there, so the gain is not guaranteed.

The airport belt around Vile Parle and Santacruz is a different story. Its appeal rests on a central location as much as on the terminal, and Mid-Day reports that airlines may return once the new building opens. So the loss of demand looks temporary and uncertain, not a clear decline. Nothing in the report points to a move in rents or prices on either side, and any change will depend on which airlines choose which airport. Treat this as a plan in progress, not a finished shift. Mumbai's average of 32000 per sq ft makes even small shifts in demand costly for buyers who get the timing wrong.