78mn sq ft to be added from airports

Nearly 78 million sq ft of real estate is expected to be added by 2015 due to modernisation and upgradation of 47 airport projects. The projects cover a total of 40,000 acres of airport area across 40 existing and 7 new airports in the country, according to Airport Realty Report by global property consultancy Cushman & Wakefield.

According to the report, if  the airports are modernised as per the schedule, then non-aeronautical revenues might increase from the current 35 per cent to 54 per cent by 2015. It is estimated that rent from retail, office and hospitality will constitute nearly 45 per cent 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 from advertising, car parking etc. 

Anurag Mathur, joint managing director of Cushman & Wakefield said,"Globally airports derive a large portion of their income from non-aeronautical revenue sources; Heathrow, San Francisco, Vancouver and Brisbane, bring in as much as 50 per cent of their revenues from retail and other non-aeronautical resources. With the greenfield projects in Hyderabad and Bangalore taking their maiden steps, India is soon to replicate this potential revenue earning model."   

According to the estimates, retail space accounts for 18 per cent 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 of 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.
  
The study also estimates office space to be more than 50 per cent of the total real estate space projected of the airport projects. With nearly 41 million sq ft office space planned, the three tier-I locations are expected to received 14 million sq ft of office space, where as the five tier II cities expect 13.5 million sq ft by 2015. Tier III locations which include over 35 cities would account for approximately 32 per cent  of the total office space supply amounting to 14 million sq ft.
  
According to the research estimates, hospitality space accounts for nearly 30 per cent of the total airport real estate space projection. This hospitality space will be spread across roughly 27,525 rooms which includes 10,050 five-star properties, 12,270 four-star properties and 5,205 three-star and other budget properties across the country.

78mn sq ft to be added from airports