Meta: The aviation sector significantly impacts the price of the real estate market. It boosts demands for new warehouses, factories, and logistics demands close to airports…
Introduction
It’s common for property prices to skyrocket when the properties are in close proximity to the airports.
This is an important factor to consider whether you’re an investor, work in the aviation sector, or someone planning to purchase a property close to airports.
The aviation sector significantly impacts the price of the real estate market. It also works as a key player in improving local communities and boosting micro-economic growth in the surrounding area.
In this blog post, we’ve explored how the real aviation sector and the airports help the real estate market thrive.
Impacts of Aviation Industry in the Real Estate Market
The aviation industry has made a significant contribution to the growth of the real estate industry worldwide. This contribution goes both in terms of demands and prices.
The aviation industry itself depends a lot of commercial real estate properties. On the other hand, it has a massive impact on a country’s economy by improving travel operations and tourism revenue.
When a locality starts developing airport projects, it directly impacts the commercial real estate industry. Also, as the airport becomes active, it starts bringing in tourists, booming the housing market.
Here’s a closer look into this impact –
Housing
The area near airports will develop further once the project starts developing. The establishment of an airport leads the way for smaller housing units to emerge and thrive.
The travel industry works in the intersection, bringing in more travelers who want accommodation within close proximity of the airport.
Commercial
Once the housing real estate sector solves the problem of accommodation, travelers will need conveniences near their reach. Yes, this means having offices, hotels, retail stores, and convention centers at the ready near the airport area.
Industrial
Airport areas also stay close to other real estate hubs, imparting the industrial part of the real estate sector in the process. This means – there are more warehouses, factories, and logistic demands close to airports.
It’s clear as of today that the real estate industry has a significant level of contribution from the aviation sector.
Which Verticals of Real Estate does the Aviation Sector Impact?
If we look into further details of impact and growth, we will see that there are two main verticals of the real estate industry receiving direct contributions from the aviation sector.
Property Value.
Real Estate Developments.
Aviation Impacting Property Value Increase
The property value close to the airport often reaches a growth of 20% to 25% soon after an airport project starts. The price hike doesn’t require longer than two years to come into effect.
As a result, real estate property owners can cash in more profit for their assets. This applies to both commercial and residential apartments.
Aviation Impacting Real Estate Development
With the establishment of airports, commercial and residential projects start. While the existing properties attract a price hike, the development of new units stimulates long-term growth.
The area soon requires more housing units for warehousing, industries, and commercial needs. So, new real estate project development becomes a necessity. It’s safe to say that aviation sectors indirectly impact the expansion of a country’s real estate industry.
Impact on the Economy
The aviation sector also impacts government revenue through customs duties, taxes, fees, and other charges.
Also, airports boost infrastructure growth. As a result, education, healthcare, and other public services improve.
Impact on Commercial Districts
When the development of an airport project is underway, it can also impact the development of a commercial district. This can impact the economy as a macro unit built around a small commercial district developed around the district.
A dense population around the airport area can impact the overall economy of the commercial district.
Helping New Communities to Emerging
The intersection of airports and the real estate market can help a new community emerge and thrive.
A good example would be the communities built in places like Emaar South and Plam Jabel Ali of Dubai. It also brings many investors to consider the Investment trend in Dubai real estate in 2025.
Examples of Airports Impacting the Housing Market
Many airports worked as a positive factor in boosting the housing market of a specific location.
We’ve explored some examples of different airports and how they have impacted the real estate market.
Example 1
The London City Airport is often marketed as a positive factor in increasing the property value in the area. It’s a convenient location and provides access to the central part of London.
It makes the place convenient for people who rent residential apartments close to the City Airport in London.
On the contrary, renters and buyers can see the price increase with a perspective opposite to the investors.
The higher maintenance fees due to a prime location type often put it beyond some people’s level of affordability.
Example 2
Although convenient, some prime locations established by airports also had a downward price impact on some properties. There were several studies regarding some airports affecting the price decrease of properties nearby.
Suvarnabhumi Airport in Bangkok is one example of such studies. This is due to the noises of aircraft audible from the close proximity of the airport.
Example 3
Although some areas close to the airport see a negative price impact on properties, they can also improve. The Hong Kong International Airport stands as a testament to that.
Initially, the property value of areas close to the airport decreased due to aircraft noises. However, the pricing has improved recently, and the community is growing alongside.
Example 4
It’s true that areas in very close proximity to airport areas see a negative impact on property value. However, it depends more on the range of the area. Property value within a 5 kilometer radius of an airport can have a negative impact.
However, as the radius expands, the price can go down. A rising example can be the Parandur Airport in Chennai.
Experts are of the opinion that this airport will increase property value close to the location. Some strong reasons behind them include new job creation in the tourism sector, higher property price increases in the region, and more.
Conclusion
In conclusion, it’s safe to say that airports and the aviation sector play a crucial part in the real estate market. We’ve explored how different types of real estate properties appreciate in value when an aviation project is underway close to the area.
The factors mentioned in this article should help you understand the importance of Aviation and how it can impact your decision to set up a new residence. Let us know if this article was helpful. Thank you for reading.
