Retail Stock in Top 7 Cities Falls 2%, But Expected to Rise 43% by 2027
The stock of operational retail spaces in India’s top seven cities fell by 2% in the first half of 2023, according to a report by property consultancy JLL. However, the report also said that the overall stock of retail space is expected to increase by 43% to reach 127 million square feet by the end of 2027.
The decline in the stock of operational retail spaces was due to the closure of around 4 million square feet of shopping malls. This was offset by the addition of 2.63 million square feet of new mall spaces.
The report noted that the majority of the current operational mall stock is located in Delhi NCR (28 million square feet) and Mumbai (17 million square feet).
The report also said that the Indian retail sector is expected to attract more institutional investment in the coming years. This is due to the quality supply pipeline and new malls announced by established developers.
The report also noted that 24 new international brands have entered India since 2021, making a beeline for superior-quality mall developments in the gateway cities of Delhi NCR, Mumbai and Bengaluru.
The report identified two emerging retail formats: premium outlet centres and highway retailing.
Premium outlet centres are cashing in on the changing lifestyle and aspirational choices of young, affluent and well-travelled Indians. Highway retailing is expected to be a big growth driver for the retail sector with infrastructure augmentation and an uptick in leisure travel.
Here are some of the key takeaways from the article:
- The stock of operational retail spaces in India’s top seven cities fell by 2% in the first half of 2023.
- The overall stock of retail space is expected to increase by 43% to reach 127 million square feet by the end of 2027.
- The majority of the current operational mall stock is located in Delhi NCR (28 million square feet) and Mumbai (17 million square feet).
- The Indian retail sector is expected to attract more institutional investment in the coming years.
- 24 new international brands have entered India since 2021, making a beeline for superior-quality mall developments in the gateway cities of Delhi NCR, Mumbai and Bengaluru.
- Two emerging retail formats are premium outlet centres and highway retailing.
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