Driven largely by rising consumption, the rebound in Indian retail market has been exemplary in 2022 which is favourably impacting retail real estate across the country, finds a joint report by real estate consultants ANAROCK and Retailers Association of India (RAI).
Buoyed by the growth, developers now plan to add nearly 25 Mn sq ft of new mall space across the Top 7 cities over the next 4-5 years, finds the report '. Back in 2022, the top 7 cities added over 2.6 Mn sq ft of mall space which was 27% more than the preceding year (2021).
NCR & Hyderabad account for 46% of total new upcoming supply, closely followed by Bengaluru at 19%. In 2022, top 7 cities added 2.6 Mn sq ft of mall space - increasing by 27% against 2021. Bengaluru & Hyderabad were the only cities with new supply addition in 2022.
Rentals in malls appreciated by nearly 15%, is higher than the pre-pandemic levels. The retail sector attracted around USD 1,473 Mn b/w 2019 – 2022
The share of organised retail doubled - from 9% in FY19 to 18% presently, growing at a CAGR of 20%. Online retail market in India is approx. 25% of total organised retail market, likely to be over 37% by 2030.
Presently, the top cities have over 51 mn sq ft of mall stock across the country with NCR, MMR, and Bengaluru accounting for 62% of the total stock. In terms of avg. rentals in malls, these appreciated by nearly 15% in 2022 over the previous year, thus reaching higher than the pre-pandemic levels. Bengaluru registered the highest uptick in rentals of around 27%, followed by Kolkata at 20% in 2022 over the previous year.