Mumbai International Airport Ltd (MIAL) has recently secured the environment clearance from the state government to commercially develop the land around the airport. The development will make available over five million sq feet of commercial and retail space and has a lease rent potential of over Rs 4,300 crore.
According to MIAL, the cost of development, which includes commercial space and hotels as well as public infrastructure such as roads, underpass, skywalks, drainage lines, rain water recycling and other utilities, is Rs 2,800 crore, nearly a third of the airport modernisation project. It is unclear how the public infrastructure works valuing Rs 1,000 crore will be funded. The rest is the cost of commercial development.
MIAL has secured environment permission for construction of six building blocks in Santa Cruz and Sahar areas near the airport. This will include commercial and office space, hotels, convention centres and multi level parking lots with a total built up area of 5.36 million square feet.
According to property market sources, the development of 5.36 million sq ft has a lease rental potential of over Rs 4,300 crore or Rs 7,000 to Rs 8,000 a sq ft.
"MIAL will lease land to prospective developers. It plans to have 3 to 5 five star hotels, about one to two million sq ft of commercial space including retail. The developments would come up at both sides of approach road to the international airport,'' a real estate source said.
Mumbai airport has a total land area of 1,976 acres. The land available for real estate development is around 200 acres.
