The upgradation of the Mumbai airport is set to unlock a staggering 5.7 crore square feet, translating to approximately 132 acres, dedicated exclusively to non-aeronautical functions such as retail, commercial ventures, and hospitality. This expansive area is primarily situated around Sahar village, Kurla, and Kalina.
According to a recent report from Cushman & Wakefield focusing on Airport Realty, the modernization and enhancement of 47 airport projects across India are anticipated to generate around 78 million square feet (1,790 acres) intended for commercial use by 2015.
For the Mumbai segment, about 28% of the 132 acres, equivalent to 1.6 million square feet, will be allocated for retail endeavors, while 50%, or about 2.87 million square feet, is earmarked for hospitality. Furthermore, 22%, or 1.26 million square feet, will be set aside for office spaces, leading to the development of around 3,200 hotel rooms mainly in five and four star establishments.
The Cushman & Wakefield analysis highlights that nearly half of the projected 78 million square feet of airport realty across India will be heavily concentrated in three major cities: Mumbai, Bangalore, and New Delhi. Collectively, these urban centers are expected to accommodate approximately 14 million square feet of office spaces together with around 10,200 hotel rooms. Nationwide, the development of airports will yield approximately 27,525 new hotel rooms.
As the global growth rate in the airport sector averages around 9% annually, India has outpaced this with an impressive average annual growth of 35% over a six-year period. Prospects suggest that non-aeronautical revenues may escalate from 35% to 54% by the year 2015.
Given that airports operate round the clock and experience high levels of foot traffic, they are considered pivotal locations for modern retail and entertainment hubs as well as business and hospitality developments.
In a notable move last year, a developer in Mumbai secured a project to clear 276 acres of land encumbered by slums neighboring Santa Cruz airport, a significant portion of which will be freed for commercial and retail expansion.