New airport work to add 78 million sq.ft. realty space by 2015: Cushman & Wakefield report
21 May 2008
Mumbai: Ongoing modernisation and upgrade projects on 47 airports in the country is expected to add nearly 78 million square feet real estate space by 2015, according to a report, 'Airport Realty,' by global property consultancy, Cushman & Wakefield. The projects cover 40,000 acres of land across 40 existing and seven new airports.
According to the report, if the airports modernisation work is carried out as per schedule, then non-aeronautical revenues may rise 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 airports' non-aeronautical revenue by 2015. The rest will come from other non-aeronautical sources like trading concessions, public admission fees and miscellaneous income from advertising, car parking, etc, the report says.
Anurag Mathur, joint managing director, Cushman & Wakefield, said,"Globally, airports derive a large portion of their income from non-aeronautical revenue sources; Heathrow, San Francisco, Vancouver and Brisbane earn as much as 50 per cent from retail and other non-aeronautical resources. With greenfield projects in Hyderabad and Bangalore taking their maiden steps, India is soon to replicate this potential revenue-earning model."
According to estimates, retail space will account for 18 per cent of the total real estate space. Office space is expected to be more than 50 per cent of the total, while hospitality will account for nearly 30 per cent. This 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.
