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Airport real estate values: What drives growth?

Author

Listed:
  • Hirsh, Max

    (Managing Director, Airport City Academy)

  • Van Der Horst, Pieter

    (Managing Director, Airport City Academy, The Netherlands)

Abstract

This paper offers guidance to airport managers who are evaluating their real estate and land asset management strategies. Through an international benchmark study of airport property values, it identifies the key factors of growth in land prices and rent levels, and quantifies the resulting increase in real estate values at the airport and in the surrounding airport area. The paper has three key findings. First, airport areas experience a long-term increase in property values across all land use categories, with the sharpest price increases taking place in the first ten years of development. Second, direct airport access generates a significant price premium, with commercial and industrial plots located in airport areas achieving higher property values and rent levels compared to competing locations that do not have direct airport access. Finally, eight key factors of growth that lead to long-term increases in airport property values are identified. The paper concludes with four key questions that decision makers should consider when evaluating their future real estate strategy.

Suggested Citation

  • Hirsh, Max & Van Der Horst, Pieter, 2022. "Airport real estate values: What drives growth?," Journal of Airport Management, Henry Stewart Publications, vol. 16(4), pages 361-375, September.
    • Handle: RePEc:aza:jam000:y:2022:v:16:i:4:p:361-375
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    More about this item

    Keywords

    airport real estate; non-passenger revenue; airport urbanism; cargo;
    All these keywords.

    JEL classification:

    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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