India’s airports are no longer just gateways for passengers—they are rapidly evolving into full-fledged commercial ecosystems. According to a new report by Knight Frank India and the National Real Estate Development Council (NAREDCO), aerocities built around major airports could unlock a staggering $29.5 billion in non-aeronautical revenues annually by 2030, driven by retail, hospitality, and real estate leasing.
Also Read:- Mumbai Airport Non-Aero Ecosystem
Passenger Growth Fuelling New Opportunities
Air passenger traffic in India is projected to surge nearly 50%, from 412 million in FY 2025 to 600 million by FY 2030. This spike in demand provides the perfect backdrop for airports to tap into non-aero revenues. Even a modest increase of just $1 (₹87) per passenger could generate the projected $29.5 billion, marking a 26% jump from current revenue levels.
Also Read:- How Infrastructure Boosts Real Estate Values
From Transit Hubs to Integrated Economic Zones
Aerocities are not just add-ons—they represent the future of Indian aviation. These large-scale urban ecosystems around airports will combine:
- Retail spaces featuring global and domestic brands
- Hospitality hubs with hotels and convention centres
- Commercial and office zones for businesses
- Entertainment and lifestyle destinations attracting both travelers and locals
This transformation will help airports evolve into integrated economic zones, creating new business districts, jobs, and tourism opportunities while boosting profitability.
Also Read:- Navi Mumbai International Airport impact
The Power of the PPP Model
The report highlights that airports operating under the public-private partnership (PPP) model already generate 87% of India’s non-aero revenues, despite handling just 64% of total traffic. This efficiency showcases how private participation is essential to unlocking future revenue streams and diversifying beyond aeronautical income.
Also Read:- Airport-Linked Corridors and Logistics Growth
India Matching Global Benchmarks
India’s leading airports are already competing on a global scale. For instance:
- Mumbai Airport: $20.1 per passenger in non-aero revenue
- Delhi Airport: $18.1 per passenger
These figures nearly match leading international hubs like London Heathrow ($21.6) and Tokyo Haneda ($19.9)—demonstrating India’s strong retail and hospitality potential.
Expert Views on India’s Aerocity Future
- G Hari Babu, President, NAREDCO: “The development of aerocities is an opportunity for the real estate sector to create world-class urban ecosystems that will drive India’s next phase of growth.”
- Shishir Baijal, Chairman & MD, Knight Frank: “India is at an inflection point where aviation growth directly fuels real estate development. Delhi and Mumbai airports are already setting global benchmarks.”
- Rajeev Vijay, Executive Director, Knight Frank India: “With private equity and institutional investors showing interest, the next growth chapter will be defined by aerocity-led development, turning airports into economic powerhouses.”
Also Read:- Tesla Leases Massive 51,000 Sq Ft Space in Gurugram for New Showroom and Service Hub
Why Aerocities Matter for India’s Growth
Aerocities present a win-win model:
- For airports: steady non-aero revenue streams
- For real estate developers: massive growth potential
- For governments: engines of urban development and global connectivity
- For passengers: premium experiences through retail, dining, and entertainment
As passenger traffic surges and real estate integrates with aviation, India’s airports are on track to become global growth accelerators, reshaping not just travel but also the future of urban development.
India’s airports are no longer just gateways for passengers—they are rapidly evolving into full-fledged commercial ecosystems. According to a new report by Knight Frank India and the National Real Estate Development Council (NAREDCO), aerocities built around major airports could unlock a staggering $29.5 billion in non-aeronautical revenues annually by 2030, driven by retail, hospitality, and real estate leasing.
Also Read:- Mumbai Airport Non-Aero Ecosystem
Passenger Growth Fuelling New Opportunities
Air passenger traffic in India is projected to surge nearly 50%, from 412 million in FY 2025 to 600 million by FY 2030. This spike in demand provides the perfect backdrop for airports to tap into non-aero revenues. Even a modest increase of just $1 (₹87) per passenger could generate the projected $29.5 billion, marking a 26% jump from current revenue levels.
Also Read:- How Infrastructure Boosts Real Estate Values
From Transit Hubs to Integrated Economic Zones
Aerocities are not just add-ons—they represent the future of Indian aviation. These large-scale urban ecosystems around airports will combine:
- Retail spaces featuring global and domestic brands
- Hospitality hubs with hotels and convention centres
- Commercial and office zones for businesses
- Entertainment and lifestyle destinations attracting both travelers and locals
This transformation will help airports evolve into integrated economic zones, creating new business districts, jobs, and tourism opportunities while boosting profitability.
Also Read:- Navi Mumbai International Airport impact
The Power of the PPP Model
The report highlights that airports operating under the public-private partnership (PPP) model already generate 87% of India’s non-aero revenues, despite handling just 64% of total traffic. This efficiency showcases how private participation is essential to unlocking future revenue streams and diversifying beyond aeronautical income.
Also Read:- Airport-Linked Corridors and Logistics Growth
India Matching Global Benchmarks
India’s leading airports are already competing on a global scale. For instance:
- Mumbai Airport: $20.1 per passenger in non-aero revenue
- Delhi Airport: $18.1 per passenger
These figures nearly match leading international hubs like London Heathrow ($21.6) and Tokyo Haneda ($19.9)—demonstrating India’s strong retail and hospitality potential.
Expert Views on India’s Aerocity Future
- G Hari Babu, President, NAREDCO: “The development of aerocities is an opportunity for the real estate sector to create world-class urban ecosystems that will drive India’s next phase of growth.”
- Shishir Baijal, Chairman & MD, Knight Frank: “India is at an inflection point where aviation growth directly fuels real estate development. Delhi and Mumbai airports are already setting global benchmarks.”
- Rajeev Vijay, Executive Director, Knight Frank India: “With private equity and institutional investors showing interest, the next growth chapter will be defined by aerocity-led development, turning airports into economic powerhouses.”
Also Read:- Tesla Leases Massive 51,000 Sq Ft Space in Gurugram for New Showroom and Service Hub
Why Aerocities Matter for India’s Growth
Aerocities present a win-win model:
- For airports: steady non-aero revenue streams
- For real estate developers: massive growth potential
- For governments: engines of urban development and global connectivity
- For passengers: premium experiences through retail, dining, and entertainment
As passenger traffic surges and real estate integrates with aviation, India’s airports are on track to become global growth accelerators, reshaping not just travel but also the future of urban development.
