The retail sector in India is undergoing a remarkable transformation, propelled by brand expansion, consumer trust, and strategic leasing. JLL India’s recent report sheds light on the industry’s positive trajectory, forecasting a substantial increase in retail space supply—over 38 million square feet between the second half of 2023 and 2027—across the country’s top seven cities.
Key Insights from the JLL Report:
- Massive Supply Surge: JLL India’s report projects a significant surge in new retail space supply, indicating a robust growth phase for the retail sector.
- Global Brands Flock In: Since 2021, the survey reveals the arrival of 24 new international brands in India, with a keen focus on Grade A malls in Delhi NCR, Mumbai, and Bengaluru.
- Operational Footprint: As of H1 2023, the top seven cities—Delhi NCR, Mumbai, Pune, Bengaluru, Kolkata, Chennai, and Hyderabad—boast 89 million square feet of operational retail space, underscoring the industry’s current scale and potential.
Delhi-NCR: A Pinnacle of Retail Excellence
Delhi-NCR emerges as a key player in India’s retail landscape, driven by its strategic location, well-planned infrastructure, and connectivity. The region, home to businesses, corporate headquarters, and government offices, is witnessing a surge in commercial activity, fueled by the growing urban population and working class.
Insights from CBRE’s ‘India Market Monitor Q2 2023’:
- Leasing Surge: The first half of 2023 witnessed a 24 percent surge in leasing activity, with Delhi-NCR, Bangalore, and Ahmedabad contributing significantly.
- Sector-wise Dominance: Fashion & clothing took the lead, constituting 38% of total lease activity, followed by the food and beverage sector.
- Gurugram’s Ascendance: Gurugram, with its strategic location and well-planned infrastructure, saw a remarkable 65% increase in retail leasing in the first half of 2023.
Quality Retail Spaces in Demand
Businesses are increasingly seeking high-quality retail spaces that are well-designed, easily accessible, and strategically located. Gurugram, with its dynamic approach and flourishing economy, is emerging as a key destination for retailers and investors.
The Future of Retail in India: A Dynamic Landscape
As the economy improves and consumer confidence grows, the retail industry’s future looks promising. Brands are now focused on creating unique retail experiences that go beyond mere transactions, aligning with changing consumer preferences and ensuring sustained growth in the sector.