With infrastructure being developed across the country at a fast pace, its time transit-oriented retail assets are monetised to reduce dependency on passenger tariffs and open a new revenue stream for future infrastructure developments. Backed by a potentially healthy growth in passenger traffic and transport infrastructure, this transit retail opportunity is estimated to grow to Rs 1,55,131.2 crore by 2030, according to a report by Knight Frank.
The large retail potential translates into lease rental opportunity of Rs 7,182 crore, currently which is estimated to grow to Rs 22,982.4 crore by 2030.Considering the current lease rent opportunity, the government can potentially monetise these transit - oriented retail assets to generate funding to the tune of Rs 71,820 crore, the report by Knight Frank said.
The transit retail potential translates into lease rental opportunity of Rs 7,182 crore, which is estimated to grow to Rs 22,982.4 crore by 2030.
While the retailing potential is best tapped at airports, it is still at a nascent stage for other modes like metros, railways, highways and bus stations. The report estimates the current size of transit retail in India at Rs 15,800.4 crore. A large part of the retail opportunity at transit hubs is currently untapped due to lack of retail infrastructure at these nodes, it noted.
The total retail opportunity for airports is projected to grow to Rs 66,792.6 crore by 2030, from Rs 10,054.8 crore in 2019. The lease rental opportunity is projected to touch Rs 11,491.2 crore by 2030 for the airport operators, the report said.
As for metro stations, the total retail opportunity is projected to grow to Rs 40,219.2 crore by 2030 from Rs 4,309.2 crore in 2019. The annual passenger traffic in Metro, which is estimated to touch 7.32 billion by 2030 is expected to be the biggest growth driver for retail.
The total retail opportunity at redeveloped railway stations projected to touch Rs 13,649.8 crore by 2030 from Rs 718.2 crore in 2019.
The total retail opportunity for highway retail in India is expected to reach Rs 30,164.4 crore by 2030, from Rs 718.2 crore in 2019. The lease rental opportunity for airport operators projected to grow to Rs 3,591 crore by 2030.
The total retail/mixed-use development potential at bus stations projected to reach Rs 6,463.8 crore by 2030, from Rs 71.82 crore in 2019. The lease rental opportunity is projected to grow to Rs 718.2 crore by 2030, the report said.($1= Rs 71.82)