The Kingdom of Heaven will be on earth. It is a heavenly kingdom because it comes from God who is in heaven. The laws will be heavenly laws. The king will be from heaven — Jesus Christ, the only begotten son of God.
There are many verses which describe the Kingdom being on earth. Here are a small selection of them:
“… But the stone that struck the image became a great mountain and filled the whole earth.” … “And in the days of those kings the God of heaven will set up a kingdom that shall never be destroyed, nor shall the kingdom be left to another people. It shall break in pieces all these kingdoms and bring them to an end, and it shall stand forever, just as you saw that a stone was cut from a mountain by no human hand, and that it broke in pieces the iron, the bronze, the clay, the silver, and the gold” Daniel 2:35 & 44-45
So we find from Daniel chapter 2, that in the last days of man’s rule, God will destroy the kingdoms of men and replace these kingdoms with his own kingdom. This kingdom will be an everlasting kingdom that will grow to fill the whole earth.
“… by your blood you ransomed people for God from every tribe and language and people and nation, and you have made them a kingdom and priests to our God, and they shall reign on the earth.” Revelation 5:9-10
The above passage is a description of the immortalised saints ruling with Jesus. Notice where they are ruling — not in heaven but on earth. Once again in the passage below, we see that the earth is the inheritance of the righteous.
“Blessed are the meek: for they shall inherit the earth”. Matthew 5:5
The phrase “The Kingdom of Heaven”, occurs exclusively in Matthew’s account of the gospel. If you compare parallel passages in other gospel records, you will find “The Kingdom of God” used as an equivalent. For example, Matthew 8:11-12 cf Luke 13:28-29; Matthew 10:7 cf Luke 9:2; Matthew 11:11 cf Luke 7:28.