November 16, 2024
< Back to BlogAir rights offer a range of use cases for investors and owners. As a property owner, having air rights and the ability to utilize the space above your property represents one of real estate’s most intriguing yet often overlooked investment opportunities. You can use these rights to rent to drone companies and add additional stories to your building. However, trading your air rights can bring significant profits if you don't plan to build upwards. You can trade them if you don’t have air rights. This guide will walk you through how to capitalize on this unique real-world asset that quite literally exists above our heads with SkyTrade.
The air rights market has gained substantial value in densely populated urban areas, where limited land and high demand for vertical space drive its demand. New York City, a pioneer in air rights, has utilized this strategy for over 50 years to achieve urban planning objectives, with air rights prices typically ranging from $200 to $400 per square foot.
Most people assume that only those with significant capital are eligible to invest. However, the disruptive power of blockchain technology now opens investment opportunities in real world assets, including air rights, to a wider range of participants. This innovation enables value creation in ways previously out of reach for:
Air rights for development can also be understood through the Floor Area Ratio (FAR), which measures how much building space a property can legally develop based on the land size. If a property owner hasn’t used all the allowed building space (or FAR), they may be able to sell these “unused air rights” to developers for a profit. Zoning can also be changed to allow further development of air rights parcels.
Example: If you own a property with development potential up to 80,000 square feet, then your air rights amount to 80,000 square feet. If your property currently has a 50,000 square foot building, you have 30,000 square feet of unused air rights or unused development rights. You could either expand your building by that amount or sell these rights allowing the purchaser to increase their development capacity.
As a homeowners or traders you can estimate the value of your air rights by using the SkyTrade Air Rights Calculator. Instead of calculating manually, simply visit https://calculator.sky.trade, enter your address, and find out how much your air rights are worth.
Air rights are regulated differently depending on local zoning laws and legal jurisdictions. In the United States, while property owners have rights to the airspace above their land. Federal aviation laws specify that in urban areas, navigable airspace generally starts at 500 feet above ground level.
With SkyTrade, you can unlock value and generate over $400 per cubic foot from your air rights. Take control of your low-altitude air rights through a secure blockchain system without intermediaries. Here’s how to get started:
Take control of your unused airspace and maximize its value with SkyTrade today. Your property’s airspace is now a valuable asset.