Insights into the Retail Real Estate

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Retail Real Estate Revolution Market Size,
Trends Investment Opportunities
lhe Indian íetail íeal estate sectoí is
undeígoing a metamoíphosis, díiven by a booming
economy, íising disposable incomes, and a íapidly
evolving consumeí landscape. lhis blog delves
into this dynamic maíket's cuííent state and
futuíe píospects, incoípoíating insights fíom
leading íeseaích fiíms and exploíing specific
city tíends.
Retail Real Estate Market Size in India
lhe Indian indian real estate market report
residential commercial retail value is a foíce to
be íeckoned with. Accoíding to a Ken Reseaích
íepoít, the maíket size is expected to íeach a
staggeíing USD 187.5 billion by 2025, signifying
a gíowth íate of a íobust 10.4 CAGR (Compound
Annual Gíowth Rate). lhis gíowth is fueled by
seveíal factoís
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• Rising disposable income As Indians have moíe
  money to spend, theií consumption patteíns aíe
  evolving, leading to a demand foí moíe íetail
  spaces (estimated to be aíound USD 790 billion
  in 2024).
• Increased urbanization lhe íapid gíowth of uíban
  aíeas (almost 40 of the population is expected
  to be uíban by 2030) cíeates a need foí
  convenient shopping options, díiving the
  development of malls and shopping centeís.
• Shifting consumer behavior While online shopping
  flouíishes (píedicted to íeach USD 350 billion
  by 2030), physical stoíes íemain cíucial foí
  píoduct expeíience
• and bíand building. Notably, the íise of
  omnichannel íetail stíategies, integíating
  physical and online expeíiences, is becoming
  incíeasingly impoítant.
• Retail Real Estate Market
• While íetail íeal estate thíives on consumeí
  spending, industíial íeal estate cateís to the
  needs of businesses foí waíehousing, logistics,
  and manufactuíing. Heíe's a quick compaíison

Feature Retail Real Estate Industrial Real Estate
Demand Drivers Consumer spending, urbanization, e-commerce Manufacturing growth, supply chain needs, e-commerce fulfillment
Lease Lengths Shorter (typically 3-5 years) Longer (often 5-10 years or more)
Tenant Mix Malls, high-street stores, restaurants Warehouses, distribution centers, light manufacturing facilities
Rental Rates Generally lower than industrial Generally higher due to long-term leases and specific requirements
Investment Considerations Location, demographics, foot traffic Location, accessibility to transportation hubs, infrastructure
Undeístanding these distinctions is cíucial foí
investoís and developeís to make informed
decisions about theií íeal estate
stíategies. Retail Real Estate Recruitment A
thíiving íetail íeal estate sectoí necessitates a
skilled woíkfoíce. Heíe's an oveíview of key
íecíuitment aíeas
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• Acquisition Specialists Identify and secuíe
  suitable íetail píopeíties foí development oí
  investment.
• Leasing Specialists Negotiate and finalize lease
  agíeements with potential íetail tenants.
• Property Managers Oveísee the day-to-day
  opeíations of íetail píopeíties, ensuíing tenant
  satisfaction and píopeíty maintenance.
• Retail Market Analysts Reseaích maíket tíends,
  analyze consumeí behavioí, and píovide insights
  foí stíategic decision-making.
• Investing in a stíong íecíuitment stíategy will
  ensuíe you have the expeítise needed to navigate
  the complexities of the Indian íetail íeal estate
  maíket.

Report on Retail Real Estate
CBRE highlights key tíends in the Indian íetail
íeal estate maíket
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• Growth of Organized Retail Malls and bíanded
  stoíes aíe captuíing a laígeí shaíe of the
  maíket, fueled by a gíowing píefeíence foí
  oíganized shopping expeíiences.
• Emerging Technologies lhe adoption of technology
  solutions like digital signage and data
  analytics is tíansfoíming the íetail expeíience
  foí both consumeís and íetaileís.
• Focus on Experience Retaileís aíe incíeasingly
  focusing on cíeating immeísive and engaging
  shopping expeíiences to attíact customeís (think
  viítual íeality expeíiences, inteíactive
  displays).
• Colliers íepoíted a 34 gíowth in oíganized
  íetail witnessed in FY 2022-23 in theií India
  Maíket Monitoí Q3 2023 íepoít. lhis gíowth was
  led by quick-seívice íestauíants, spoíting
  goods, and electíonics segments. Consulting
  vaíious maíket íeseaích fiíms píovides a well-
  íounded peíspective on the maíket landscape.

Retail Real Estate Market by City

• Bangalore lhis tech hub boasts a vibíant íetail
  scene, with a gíowing demand foí modeín shopping
  malls and high-stíeet stoíes cateíing to young
  píofessionals. Aíeas like Electíonic City,
  Whitefield, and Maíathahalli aíe paíticulaíly
  populaí due to theií píoximity to Il hubs.
• Chennai lhe íetail landscape in Chennai is
  witnessing an incíease in both oíganized and
  unoíganized íetail foímats. Malls aíe gaining
  tíaction, but
• tíaditional neighboíhood stoíes íemain stíong,
  especially in íesidential aíeas.
• Delhi lhe national capital offeís a diveíse
  íetail expeíience, with a mix of
• tíaditional bazaaís like Chandni Chowk, high-end
  shopping malls in Guígaon, and standalone stoíes
  thíoughout the city. Leasing activity in
  Delhi-NCR stood at a
• healthy 0.9 million squaíe feet in
  Januaíy-Septembeí 2023 (Ken Reseaích).

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Conclusion Indian Retail Real Estate
Undeístanding these local dynamics is cíucial foí
successful retail real estate market colliers
investments. Investoís and developeís should
conduct thoíough maíket íeseaích specific to
theií taíget cities.
lhe Indian íetail íeal estate maíket is bíimming
with potential. With a gíowing economy, changing
consumeí píefeíences, and incíeasing adoption of
technology, the sectoí is poised foí continued
gíowth. By undeístanding the unique dynamics of
diffeíent cities, staying infoímed about
emeíging tíends, and building a skilled team,
investoís, íetaileís, and developeís can
successfully navigate this dynamic maíket and
achieve success. The future of Indian retail
real estate is exciting. lhe integíation of
online and offline expeíiences (omnichannel
íetail) will be cíucial foí success.
Sustainability consideíations, such as
eneígy-efficient buildings and waste management
píactices, aíe also becoming incíeasingly
impoítant foí attíacting tenants and investoís.
As the Indian consumeí stoíy continues to
unfold, the íetail íeal estate sectoí will
undoubtedly play a vital íole in cateíing to the
evolving needs and aspiíations of a nation on the
íise.