Insights into the retail market

1
lhe Evolving Landscape of India's Retail Real
Estate A 2024 Maíket Analysis
The Indian retail sector is experiencing a
dynamic transformation. With a burgeoning
consumer base and rising disposable incomes, the
demand for modern retail spaces is surging. This
blog delves into the current state of the Indian
retail real estate market exploring insights from
leading firms like CBRE and Colliers, and
analyzing specific cities like Bangalore,
Chennai, and Delhi.
Retail Real Estate Market in India A Flourishing
Landscape
According to Ken Research's 2023 report, the
milford retail real estate sector value witnessed
a significant upswing in the latter half of 2023.
Leasing activity for retail space across eight
major cities (including Bangalore, Delhi-NCR,
Mumbai, Hyderabad, Chennai, Pune, Kolkata, and
Ahmedabad) soared by 46 compared to the same
period in 2022. This translates to a staggering
4.73 million square feet of leased space,
highlighting the robust demand from retailers.
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• Key Drivers of Growth
• Rising disposable incomes India's growing middle
  class is experiencing a rise in disposable
  incomes, leading to increased consumer spending
  and a demand for diverse retail experiences.
• Shifting consumer preferences Consumers are
  increasingly drawn to modern retail formats like
  shopping malls and high-street locations offering
  a curated
• shopping experience with entertainment and dining
  options.
• E-commerce boom The burgeoning e-commerce
  industry is creating a synergy with physical
  retail stores. "Click-and-collect" options and
  experience centres are driving foot traffic to
  physical stores.
• Market Segmentation
• The Indian retail real estate market can be
  broadly categorized into three segments
• Malls Modern shopping malls are a key driver of
  growth, offering a premium shopping experience
  with a mix of international and domestic brands.
• High-street locations Prominent high-street
  locations in major cities remain attractive for
  retailers due to high foot traffic and brand
  visibility.
• Standalone retail Standalone retail stores cater
  to specific needs and offer a more localized
  shopping experience.

3
CBRE vs. Colliers Insights from Leading Market
Experts

• CBRE highlights the ongoing transformation of
  the retail sector, emphasizing the increasing
  focus on creating in-store experiences that
  integrate cutting-edge technology, personalized
  services, and space optimization. This caters to
  the evolving needs of today's tech-savvy
  consumers.
• Colliers reports on the growing trend of
  "omnichannel retail," where physical stores and
  online platforms work in tandem to provide a
  seamless customer experience. This integration is
  crucial for retailers to remain competitive in
  the digital age.
• Looking ahead, both CBRE and Colliers anticipate
  continued growth in the Indian retail real estate
  market
• Expansion of organized retail Organized retail
  chains are expected to witness significant
  growth, particularly in Tier 2 and Tier 3 cities.
• Focus on Tier 2 and Tier 3 cities As disposable
  incomes rise in these cities, the
• demand for modern retail spaces will increase,
  creating opportunities for developers and
  retailers.

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• Sustainable development Sustainable construction
  practices and energy-
• efficient features will become increasingly
  important for developers seeking to attract
  tenants and cater to environmentally conscious
  consumers.

Retail Real Estate in Bangalore, Chennai Delhi
Bangalore This tech hub boasts a vibrant retail
real estate market in chennai, with Bengaluru,
Delhi-NCR, and Pune collectively accounting for
over 61 of retail space leasing activity in the
first three quarters of 2023 (CBRE). Malls like
Orion Mall and Phoenix Marketcity dominate the
landscape, attracting leading national and
international brands. Chennai The Chennai retail
real estate market is witnessing steady growth,
with a focus on both high-street locations and
shopping malls. Traditional shopping areas
like T. Nagar coexist with modern malls like
Spencer Plaza and Forum Vijaya Mall, catering to
diverse consumer preferences.
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Real-time Stats
Delhi Delhi-NCR is a major retail hub in India,
housing a mix of established shopping districts
like Chandni Chowk and Connaught Place alongside
modern malls like DLF Emporio and Select
CITYWALK. Delhi's diverse population and high
disposable incomes make it a lucrative market for
retailers.

• As of January 2024, the average retail vacancy
  rate in India is estimated to be around 4.6
  (CBRE).
• The fashion and apparel sector accounted for the
  largest share (34) of retail space leasing in
  the first three quarters of 2023 (CBRE).
• The Indian retail sector is expected to grow at a
  CAGR (Compound Annual Growth Rate) of 8-10 in

• Conclusion
• The Indian retail real estate market is on an
  exciting trajectory, driven by a growing consumer
  base, evolving shopping preferences, and a
  thriving e-commerce landscape. The insights from
  CBRE and Colliers paint a picture of a market
  ripe for innovation, with a focus on creating
  engaging in-store experiences, omnichannel retail
  integration,
• and sustainable development practices. As Tier 2
  and Tier 3 cities experience rising disposable
  incomes, the demand for modern retail spaces is
  expected to surge, creating opportunities for
  developers and retailers alike. With continued
  growth anticipated, the Indian retail real estate
  market holds immense potential to shape the
  future of shopping experiences for millions of
  consumers.