Total Size Of Transit Retail Market To Grow 10 Fold By 2030:Knight Frank
New Delhi: The total size of transit retail market is expected to grow 10 fold in the next 10 years and reach USD 21.6 billion mark by 2030.
The size of the retail transit market, which includes airports, bus stations, metro stations, rail stations, etc, stood at USD 2.2 billion mark in 2019.
The lease rent opportunity for operators (landlords) is also likely to more than treble to USD 3.2 billion per annum by 2030 from around USD 1 billion in 2019, according to a report by Knight Frank.
Specifically for airports, the total retail opportunity is likely to grow to USD 9.3 billion by 2030 from about USD 1.4 billion in 2019. The lease rental opportunity for airport operators is expected to reach USD 1.6 billion mark by 2030. Duty-Free accounted for around 59 percent of the total lease rental in 2019. The revenue per passenger was highest for Mumbai International Airport at USD 7 and Delhi International Airport stood second at USD 6 in 2019. The passenger traffic at airports is expected to reach 1.1 billion by 2030 in India, from about 349 million in 2019.
The retail opportunity at various metro stations in the country is expected to grow to USD 5.6 billion by 2030 from USD 0.6 billion in 2019. The passenger traffic at metro stations is expected to 7.32 billion annually by 2030 and would contribute to biggest growth for retail. The lease rental opportunity for metro train operators is likely to grow to USD 0.8 billion in 2030.
“India is going through an infrastructure revolution. The Government's focus on developing and modernising the transport modes including airports, railway stations, metro and highways is opening up unprecedented opportunities for the organised retail segment in India. The development of retail infrastructure at key transportation nodes through a public private partnership has presented huge opportunities to operators and retailers to monetize the potential of guaranteed footfalls with ‘wait time’,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.