CBRE South Asia Pvt. Ltd, India’s report highlights that nearly 35 major domestic and international retail brands entered 14 tier-II cities in the Jan-Sep’23 period. These 14 cities include Chandigarh, Jaipur, Indore, Goa, Mangalore, Kochi, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Vizag, Mysore, and Coimbatore.
As per the report, several domestic and international retail brands, including Croma, Armani Exchange, Malabar Gold & Diamonds, Reliance Smart, Tanishq, H&M, Marks & Spencer, GAP, Starbucks, Pizza Express, Under Armour, among others, have expanded their retail footprint to tier-II cities in Jan-Sep’23 period.
According to the report, the total retail stock in these 14 tier-II cities stood at 29 mn. sq. ft. as of Sep’23, with Jaipur, Lucknow, and Chandigarh each boasting retail stock ranging between 3 to 7 mn. sq. ft. The retail development in these cities has been a healthy mix of high streets and malls. The total retail supply recorded in these 14 cities has been ~2.4 mn. sq. ft. during Jul-Sep ’23. Top cities dominating supply addition during this period include Chandigarh, Jaipur and Lucknow. The total absorption across the 14 cities stood at 2.4 mn sq. ft. in Jul-Sep’23 period, led by Kochi, Jaipur, and Goa.
Chandigarh: Owing to the presence of an affluent consumer base, well-planned infrastructure, economic growth, tourism, and the presence of domestic and international retail brands, Chandigarh has grown to become a prominent retail market in Punjab. Chandigarh, alongside its sister cities - Mohali, Panchkula, and Zirakpur, has emerged as a prominent retail destination, offering a thriving market for growth and development. Retail space absorption during Jan-Sep’23 stood around ~0.25 mn. sq. ft., supply stood ~0.4 mn. sq. ft. Nexus Elante Mall, one of the leading malls in Chandigarh houses several prominent global and domestic brands. Key micro-markets of Chandigarh are located at Sector 17 and 35 – Madhya Marg in Chandigarh, Phase 3B - 2, Sector 82, Sector 70, Phase -7 in Mohali, Sectors 8, 9, & 20 in Panchkula. The Ambala – Chandigarh Expressway, VIP Road in Zirakpur too is emerging as a micro-market wherein Cosmo Mall, well-known for its factory outlet stores is located. The micro-market also houses Dhillon Plaza - an organised retail high street that includes athleisure, hypermarkets, multiplex, fashion & apparel brands, along with drive-through QSR formats. Key brands present in the city include Zara, Uniqlo, Lifestyle, Shoppers Stop, Marks & Spencer, The Collective, Nike, Adidas, Skechers, Puma, Frontier Raas, Taco Bell, Ritu Kumar among others HLP Galleria, Jubliee Junction, Central Street, Mohali Citi Center are some of the major upcoming developments in the city
Jaipur: Lower operating costs, a good talent pool, and proximity to Delhi-NCR have led to Jaipur becoming a prominent business hub. The city also houses an international airport and an air cargo complex, making it a reliable destination for facilitating exports. Retail space absorption during Jan-Sep’23 stood at nearly ~0.5mn. sq. ft., supply stood at ~0.3 mn. sq. ft.Key retail micro markets in Jaipur include Malviya Nagar, C-Scheme, M.I. Road and Vaishali Nagar. Key brands present in the city include Zara, Lifestyle, Shoppers Stop, Marks & Spencer, Starbucks, Mango, Adidas, FabIndia, Croma among others. Key malls in the city are World Trade Park Mall, Mall of Jaipur and GT General. Upcoming supply in the city will be in Pacific Mall and Pink Walk.
The Lucknow retail real estate market is witnessing robust growth driven by several factors, such as rapid urbanization and a growing middle class, increasing consumer spending, the emergence of new shopping malls and high-street retail formats and expansion of domestic and international retail brands. Retail space absorption during Jan-Sept ’23 stood at ~0.05 mn. sq. ft., supply stood at ~0.2 mn. sq. ft. Key retail micro markets in Lucknow are Gomti Nagar, Hazratganj and Ashiyana & Alambagh along with Aliganj. Key brands present in the city include Lifestyle, Westside, Marks & Spencer, Max, Pantaloons, Skechers, Nike, Croma among others. Summit Twin Tower, Rishita City Centre, Shalimar Lakeside are some of the upcoming developments in the city
Indore: Located in the heart of Madhya Pradesh, Indore stands as a prominent commercial and financial hub in central India. A thriving residential sector and a bustling trade market have created a favourable ecosystem for the city’s retail sector in recent years. Firstly, the city’s burgeoning economy, driven by a growing population and rising incomes, creates a strong consumer base eager to explore diverse shopping experiences. Secondly, the retail landscape strikes a balance between traditional markets and modern retail spaces, catering to a wide spectrum of preferences and budgets, cementing its reputation as a thriving shopping destination in central India. Retail space absorption during Jan-Sep’23 stood at ~0.3 mn. sq. ft., supply stood at less than 0.1 mn. sq. ft. Key retail micro-markets include AB Road, Central Indore, Sapna Sangeeta and East Indore.Key brands present in the city are Westside, Pantaloons, The White Crow, BlueStone, Tanishq, Tasva, Farzi Café, H&M, Fabindia, Starbucks, Croma, Zudio, Inox, Hamleys, More among others
Goa: A renowned tourist destination, provides a steady influx of customers year-round, bolstering retail businesses. In addition to fashion, apparel, homeware, and department store brands, Goa is a vibrant hub for the F&B industry. The region is renowned for its diverse culinary scene, featuring numerous fine dining restaurants that cater to both international and local cuisine. Retail space absorption during Jan-Sep ’23 stood at ~ 0.4 mn. sq. ft., supply stood at ~0.3 mn. sq. ft. Key retail micro-markets in the city are Panjim, Margao, Mall De Goa. Key brands present in the city includes Levi's, Puma, Adidas, Skechers, Nike, Orra, Vero Moda, Only, among others. Upcoming supply in the city is in DLF Mall in Panjim
