The retail real estate sector in India is poised for massive expansion, with the existing retail stock of 89 million square feet expected to increase by nearly 50 pc and reach 134 million square feet by the end of 2028. A report by JLL highlights the expected growth trajectory and regional distribution of this expansion.
Real Estate Boom: Retail Space Growth
Delhi NCR is anticipated to lead the surge in retail space, capturing the highest share of 43 per cent in the supply over the next five years. Following closely behind are Hyderabad with a 21 per cent share and Chennai with a 13 per cent share, according to the JLL report.
Delhi-NCR is on track to become India’s retail powerhouse, according to Harinder Singh Hora, Founder Chairman of Reach Group. He further added, “With the highest share of new retail space nationwide, the region caters to growing consumer demand for engaging shopping experiences. Developers are responding by creating integrated shopping destinations that combine retail with entertainment and dining, offering a one-stop-shop experience, exemplified by Gurugram’s strategic location and innovative concepts.”
Delhi NCR And Major Cities To Lead The Surge
The top seven cities in India, including Mumbai, Delhi NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai, are projected to witness the infusion of approximately 45 million square feet of retail space through 88 new retail developments. This outpaces the supply observed in the past decade (2014-2023), which stood at around 38 million square feet, as indicated by the report.
Sandeep Chillar, Founder & Chairman, of Landmark Group explained the report finding shows the indicative growth of a 50 per cent increase in new retail supply in the next five years which is perfectly aligned with the growth trend across cities. With developers’ focus on creating integrated shopping destinations that cater to evolving consumer preferences, Delhi-NCR has been witnessing a healthy surge in new retail supply for the last couple of years. Driven by a blend of innovation in retail concepts and strategic location, Gurugram is likely to remain the prime retail hub in NCR.
The report highlights a growing trend towards larger-sized retail centers, driven by the evolving preferences of modern shoppers who seek unique experiences. Out of the 88 upcoming retail developments, 12 will be large-sized projects spanning at least 1 million square feet each. These projects are expected to contribute significantly, comprising 37 per cent of the total anticipated supply until 2028.
Trend Towards Experience-Led Developments
Developers are increasingly focusing on creating comprehensive destinations that offer entertainment, leisure activities, and dining options alongside retail spaces. This shift is driven by increasing global travel and heightened consumer awareness, leading to a demand for enhanced retail experiences.
Amish Bhutani, MD, Group 108 said that “evolving consumer preferences, developers are dedicated towards retail growth by creating integrated shopping destinations that contribute to individualized & engaging shopping, entertainment and convenience. The projected addition of retail developments will not only enhance the retail landscape but also meet the demands of today’s consumers. We envision aligning with this development, curating organized retail spaces, and elevating our consumers’ experience.”
Source : Times Now News
