The retail sector in the country was under duress for a long time due to the pandemic. However, since March 2022, there has been an equally swift recovery owing to the favorable demographics, rapid urbanization, and rising consumption. All these factors have together created an environment that has boosted the confidence of the sector.
With growth potential in the retail sector, investors expect healthy returns in the long run. Investors are looking for quality Grade A assets by established developers and having a marginal vacancy. With the retail market rebounding with strong leasing activity by international and national retailers, the vacancy in superior Grade A assets has been declining constantly.
Investors prefer leased-based assets over strata-sold assets to ensure fair market rentals and timely returns. Investment in retail assets is not just limited to metros, as significant activities have been recorded in Tier II and Tier III cities as well.
The Tier II and III cities are witnessing a considerable supply of quality retail assets by established developers. Additionally, investments by these big institutional players help developers to exit the project partially or fully, reduce their debt, and focus on other developments.
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