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Airports to add 78 mil sqf of RE to Indian cities by 2015
20 May 2008
| A report suggests that the modernisation and creation of 47 airports across India will add 41 mil sqf of office space, 27,000 hotel rooms and significant retail space to Tier I, II and III cities. Delhi, Mumbai and Bangalore are expected to account for approximately half of the new space. Anurag Mathur, Joint Managing Director of Cushman & Wakefield India says, "The new generation airports are expected to bring about holistic real estate development encompassing retail, commercial as well as hospitality. While it is expected that prospects of the property market near airport zones will remain promising, exactly how much these markets develop further will, to a large extent, depend on a number of factors like the ability of the government to deliver adequate infrastructure to support growth and overall urban planning." India has seen an average growth rate of 35 percent per annum over the past six years, far outpacing the global average of nine percent. Currently, however, airport's non-aeronautical income (at 35 percent) lags behind airports such as Heathrow and Brisbane, who generate 50 percent of their revenue from sources such as commercial rents, parking and other passenger charges. The report estimates that, if privatisation continues and development projects are completed as scheduled, Indian airports will be able to increase non-aviation income to 54 percent by 2015. The 40 modernisation and seven Greenfield sites will bring 14 mil sqf of office space to Delhi, Mumbai and Bangalore, 13.5 mil sqf to five Tier-II cities and 14 mil sqf to over 35 Tier III cities across the country. Retail will be more heavily concentrated in Tier III cities, although the plan for Hyderabad incorporates 1.8 mil sft of retail. The report predicts that the additional space, on top of new non-airport constructed projects, is likely to put pressure on rentals over the long term. Back to news page |
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ISSN 1994-9464
Key title: RFP magazine
Abbreviated key title: RFP mag.
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