Nearly 78 million square feet real estate space is expected to be added by 2015 due to 47 airport modernisation and upgrade projects.
The projects cover 40,000 acres across 40 existing and seven new airports, according to the Airport Realty Report by global property consultancy Cushman & Wakefield.
The report says if the airports are modernised according to schedule, the 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 accounts for 18 per cent of the total real estate space projections for airport projects. Most of this supply is concentrated in 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 projected retail space.
The study estimates office space to be more than 50 per cent of the total real estate space projected for airport projects.
With nearly 41 million sq ft office space planned, the three tier-I locations are expected to add 14 million sq ft office space, whereas the five tier-II cities expect 13.5 million sq ft by 2015. Tier-III locations, which include over 35 cities, would account for around 32 per cent of the total office space supply amounting to 14 million sq ft.
Hospitality accounts for nearly 30 per cent of the total airport real estate space projection. 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.
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