What are Air Rights & Why They Matter in Real Estate?

Air rights are the rights to occupy or control the vertical space above a real estate property. The legal concept of air rights is Cuius est solum, eius est usque ad coelum et ad inferos, which means "whoever owns the soil, it is theirs up to heaven and down to hell." Air rights include the right to use or own any unoccupied space above a property, such as the top floors of a high-rise structure, power lines, or a section of airspace over a property.

How Air Rights Work in Real Estate

When purchasing any building, the owner acquires the right to the land and the space above the building. Air rights offer a developer potential for growth as they can be leased or sold like any other property rights through Transfer Development Rights. This is particularly essential for a developer since the aerial space has a lot of growth possibilities.

In most circumstances, a building's airspace may be utilized as the property owner sees it appropriate, as long as the height of their structure conforms with the zoning rules and construction standards of the specific zoning district. The boundaries of any new construction or existing building must not intrude on any adjacent building or property that you do not own.

The Impact of Air Travel on Air Rights

Air rights formerly extended indefinitely into the sky, but this notion changed as air travel became more popular in the early 20th century. Currently, the Federal Aviation Administration (FAA) governs navigable airspace, which normally starts at 499 feet above ground. All structures above 499 feet are considered obstructions and the FAA will continue to conduct an aeronautical study on these types of structures to determine their effect on the navigable airspace and ensure they do not create a hazard.

Conclusion

Air rights are an essential factor in real estate as they can increase your property's value. For instance, if you purchase a ten-story property with the option to construct five additional floors, you may be able to utilize the difference of five stories for development projects in the future or sell the respective air rights to adjacent properties for their further development.