Report predicts boom in Indian airport non-aeronautical revenues

Nicole Mezzasalma

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New research says non-aeronautical revenues could represent 54% of the total airport revenue at Indian airports by 2015

A report from real estate firm Cushman & Wakefield predicts that non-aeronautical revenues at airports in India could represent 54% of total revenue by 2015. The “Airport Realty Taking Off” research claims that the privatisation of airports in the country has already increased that proportion from 21% in 2005-06 to the current 35%.

 “This increase is mainly attributable to the one-time upfront fees from joint ventures as the privatisation at the major airports (Mumbai Chhatrapati, New Delhi Indira Gandhi, Hyderabad, Bangalore) was initiated during the year,” the report said.

The research added that retail revenue will correspond to 27% of the total non-aeronautical revenues in 2015 if the current privatisation trend continues and all airport projects under development at the moment are modernised on schedule. The report also estimated that space for retail “accounts for 18% of the total real estate space projections made for airport projects”, with Bangalore, New Delhi and Mumbai airports representing 5m sq ft (464,515sq m) of retail space at the moment. “Overall, Hyderabad, with its nearly 1.8m sq ft (167,225sq m), leads the retail space supply at new airport projects,” the report concluded.

The full report can be downloaded from the Cushman & Wakefield website. Please note that free registration is required.