India’s atrocities are writing a new chapter in the real estate growth story: Report

India is witnessing a surge in the popularity of atrocities, in line with global trends. They are emerging as early indicators of the modern Indian urban lifestyle, conceptualized as sub-urban areas centered around the airport. 

Atrocities, fully operational business districts centered around airports, are a new phenomenon that urban India is witnessing. According to the most recent report prepared by 360 Realtors and Axon Developers, there are nine Aerocity projects across 14,000 acres of land in the nation. 

India has about 22%, or 3050 acres, of operational Aerocity land. There are activities in Delhi, Hyderabad, Mohali, and Durgapur. A little over 18%, or 2585 acres, of Aerocity land, is currently under development and should soon be available for purchase. 

Several projects are currently under construction, including a 150-acre project close to the recently opened Valmiki International Airport in Ayodhya, a 463-acre mixed-use project close to Devanahalli Airport, and the 172-acre Aerocity project close to the soon-to-open Jewar Airport. 

The 740-acre Aerocity project, located close to the Navi Mumbai International Airport, is currently under full construction. Together with CIDCO, Adani is developing the project. 

The UP state government has announced several important projects, including constructing a 1500-acre cityside development next to the Lucknow airport. 

The world was first exposed to Aerocities in the 2000s, when self-sustaining urban ecosystems were created near airports in Singapore, Kuala, Lumpur, London City, Dallas, and Dubai. These thriving business districts began to change as parallel central business districts, reshaping the city’s development. 

During the 2010 Common Wealth Games, India had its first Aerocity close to IGI Airport. Currently one of the most sought-after neighborhoods in the NCR, it is a 200-acre community that runs parallel to Cyber Hub, Golf Course Road, and Vasant Kunj. There are 15+ upscale hotels located in the GMR Aerocity. Aerocity is home to more than 100 of the top fast-food chains in addition to plenty of specialty shops, high streets, and lifestyle merchants. At MOPA (232 acres) and Hyderabad (1500 acres), GMR is also building other upscale Aerocities. 

Capturing the interest of both large and new companies

Atrocities are signs of the contemporary Indian way of life. “The original plan for Atrocities was to serve as commercial transit hubs for domestic and foreign travelers. Over time, however, they have developed into fully operational commercial suburbs with several upscale hotels, chic retail establishments, fine dining establishments, affluent office buildings, etc., making them a popular destination for tourists and locals. According to Ankit Kansal, MD of 360 Realtors, “They also include logistic parks, business parks, e-commerce warehousing, etc. functioning as commercial catchments.” 

There are 200-1500 acres of atrocities in the airport’s immediate vicinity (usually 1-3 km from the main airport premise.) Businesses, MNCs, and corporations are keen to locate their regional or corporate headquarters in the Aerocity region. Not only does it reduce travel expenses, but it also gives companies access to elite talent. Atrocities provide a comfortable yet laid-back environment for idea sharing, business networking, and semi-formal get-togethers; these events are quickly gaining popularity among startups and established companies,” continues Kansal. 

Expanding Transition to NAR

Airport operators are increasingly moving toward Non-Aeronautical Revenues (NAR). Large sums of money must be invested in the development and operation of airports; parking and hanger fees, airline fees, and passenger fees alone will not cover these costs. Therefore, to create new revenue streams, airport developers and operators seek opportunities in several potential sectors, including food and beverage, lifestyle, hospitality, destination marketing, real estate, etc. 

The pandemic has further highlighted how crucial it is to diversify sources of income into fresh, workable ideas. Nearly 60% of the global share is made up of NAR. It is still low in India, except for larger airports like Delhi (60%) and Mumbai (55%). It is restricted to about 15-25% in smaller airports. But times are changing, and given their attractive real estate opportunities, Atrocities will be important. 

A bustling hub for the hospitality sector 

With the increasing connection of luxury hotels, upscale hotels, corporate guest houses, long-term rental projects, serviced apartments, etc., atrocities are a hive for the hospitality industry. The total number of branded rooms in Atrocities is estimated to be around 5,500, according to data from a 360 Realtors study. It is expected to reach approximately 12,000 by 2030, with a compound annual growth rate of 16.9%. 

There are about 4,000 rooms in Delhi Aerocity alone and a large pipeline of about 3,000 more rooms. The Bangalore Aerocity has a large pipeline with approximately 2500 rooms. In Hyderabad Aerocity, a 290-room Novotel hotel is operational. Boston Living is building a posh co-living complex with 1500 beds nearby. When the Hyderabad Aerocity is finished, it will rank among India’s biggest real estate developments. 

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