Here’s why this is the right time to invest in Delhi’s duty-free retail market

• According to a report by real estate consulting firm Knight Frank, India’s transit retail market is expected to hit $21.6 billion by 2030.
• Delhi’s Indira Gandhi International airport currently sees a non-aeronautical revenue of 70%, which is much above the global average of 40%.
• With the upcoming Jewar International Airport, the retail opportunity is only set to grow.

Whether it’s you travelling abroad or a friend coming back home, a walk through the international airport is never complete without indulging at duty-free shops.

As India’s retail sector is booming – right from the fast growing e-commerce to the spread of small organised stores, there’s another subsector which too has become a favourite of consumers and retailers alike – transit retail.

Transit retail includes shops at rail, metro and airports and includes retail, food and beverage. According to a report by real estate consulting firm Knight Frank, India’s transit retail market is expected to hit $21.6 billion by 2030.

Within transit retail, the duty free segment stands out as it also dabbles in luxury items. But with India’s growing spread of airports, it is also the right time to invest in the duty free retail market.

From India’s national capital – Delhi’s Indira Gandhi International airport currently sees a non-aeronautical revenue of 70%, which is much above the global average of 40%.

In fact Delhi’s duty free, which is smaller than Mumbai’s duty-free, boasts of higher revenue per passenger – at $10-11 in FY19. The report further said that duty free retail forms a “major chunk of the total lease rent revenue earned by the airport operator with a share of 59%”.

With the upcoming Jewar International Airport, the retail opportunity is only set to grow. Being developed in Greater Noida and slated to be operational by 2023, it will be one of the world’s biggest airports. Uttar Pradesh Chief Minister Yogi Adityanath recently said that the airport will generate revenues of ₹1 trillion for the state in 30 years.

“Infrastructural development has always kept Delhi at the forefront of accounting higher retail revenue than other cities in the country. Once Noida airport gets operational, it will make the National Capital Region, the biggest transit retail opportunity sized market in India,” said Gulam Zia, executive director - retail and hospitality at Knight Frank India.

See Also:
Metro passenger traffic to grow to 7.3 billion in 10 years — turning them into mini-malls