The five years, Q2 2024 – end 2028, will see a surge in organised retail space completions. The top seven cities (Mumbai, Delhi NCR, Bengaluru, Hyderabad, Pune, Kolkata, Chennai) in India will welcome ~ 45 million sq. ft. through 88 new retail developments, outpacing the supply of the past decade (2014-2023), which was ~38 million sq. ft.
In response to the evolving preferences of modern shoppers seeking unique experiences, developers are increasingly prioritizing the development of larger retail centres. The data also suggests that upcoming retail developments will be larger in size compared to those that became operational in the last decade.
Over the past ten years, the average size of new retail supply was approximately 391,099 sq. ft. However, this is expected to increase by 30% to reach 507,341 sq. ft with the addition of new supply during Q2 2024-2028. This signifies a notable trend in the retail market moving towards larger-sized experience-led developments.
India experiences a growing trend of large-scale retail developments
Increasing global travel has heightened shoppers’ awareness, leading to a demand for unique and immersive retail experiences. Larger developments incorporating entertainment, leisure activities, and dining options are creating comprehensive destinations that cater to the modern consumer.
The majority (78%) of the upcoming retail supply of ~45 million sq. ft is lease-based that allowing developers to have greater control over the quality of the tenant mix and day-to-day management of the property, thus enabling them to command higher rentals. As a result, they can curate a diverse mix of tenants that align with their vision for the development.