Airport realty estimated at 78 mn sq ft by 2015

According to Cushman & Wakefield, Airport Realty Report, approximately 78 million sq ft of real estate space, across retail, commercial and hospitality, can be expected in the country by 2015 with the modernisation and upgradation of the 47 airport projects. These projects cover a total of approximately 40,000 acres of airport area which includes 40 brownfield and 7 greenfield projects across tier I, II and III locations of India.
At a time when the global growth rate of the airport sector has been about 9% per annum, India has seen an average annual growth rate of 35% over a period of six years. According to Cushman & Wakefield, if the current privatisation trend continues and all airport projects under development, as specified in the 11th Plan, are modernised as per schedule, then non-aeronautical revenues might increase from the current 35% to 54% by 2015. It is estimated that rent from retail, office and hospitality space will constitute approximately 45% of the total non aeronautical revenue by 2015 and the rest of the income would be generated from other non aeronautical sources like trading concessions, public admission fees and miscellaneous income, ie, advertising, car parking, etc.
According to Cushman & Wakefield research’s estimate, space for retail accounts for 18% of the total real estate space projections made for airport projects. Most of this supply is concentrated at tier-III towns and cities as it comprises tourist destinations. The highest supply is however expected to be in Hyderabad which accounts for 1.8 million sq ft of the total retail space projected.
23/05/08 Deccan Herald

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Categories: Airports May 2008