India’s Retail Real Estate to Witness 18% Surge
JLL, India’s largest real estate services firm, today launched a report titled ‘India’s Retail Realty – A Changing Face’ at the backdrop of India Retail Forum (IRF). The report showcases the evolution of organized retail in the country and factors affecting its dynamics.
There would be 18% surge in supply of ‘Superior’ grade mall space across markets, the ‘Average and Poor’ supply will go down by 9% each as developers and promoters have taken cue from their past experiences. The report also captures the increasing interest of global retailers in entering the India market through JVs or opening up of standalone outlets and how the India market should prepare itself for a whole new world of opportunities coming its way.
Experiential, Omnichannel retail and E-commerce companies have given the much needed impetus to retail space, with traditional retailers going online and e-commerce firms opening up physical stores across geographies; especially Tier 3 & Tier 4 cities to give customer a look and feel of their offering.
On one hand whilst there has been rationalisation in the demand and supply of mall stock, the key factors determining the success of malls in future will depend on the Product, Catchment and Experience provided to the customers. F&B and Entertainmentare the two areas, which have become significant footfall drivers, apart from Apparel, which leads the pack.
The total number of malls in India stand at 253 (YTD 2018) with 77 new malls being added in the H1, 2018, (which has surpassed the number of malls added in 2017 which stood at 76). It is forecasted that the future pipeline of 5 years (2018 -2022) will be 90 malls.
Commenting on the findings of the report, whilst giving an overview on the global retail world, outlining JLL’s global retail strategy and key cross-border movements, Naveen Jaggi, Chairman – JLL Global Retail Leasing Board and President Americas, Retail Advisory Services, Leasing and Capital Markets, said, “These are exciting times for the retail industry globally and Indiais no exception; today, the Indian consumer is very evolved and travelling across the world experiencing the retail revolution. Lotsof new trends are being witnessed and the industry is undergoing huge transformation from offline to online customizing it’s offering to offer bespoke experiences to its customers. India is sure to witness a boom in retail, as there is a lot of investors’interest, from across the world.”