According to a report, India is set to witness an unprecedented expansion in retail space, with the addition of approximately 45 million sq. feet of retail space over the next five years.
“This surge will see completion of 88 new retail developments across India, significantly outpacing the supply of the past decade, which totaled around 38 million sq. feet,” the JLL report said.
The existing retail stock, which stands at 89 million sq. feet, is expected to grow 50 percent and reach 134 million sq. feet by end-2028.
Delhi NCR is expected to garner the highest share or 43 percent in the supply in the next five years followed by Hyderabad with a share of 21 percent and Chennai with 13 percent share.
This expansion will be concentrated in the top seven cities, which include Mumbai, Delhi NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai.
This wave of new retail space also marks a shift towards larger and more experiential retail centres. Evolving preferences for unique and engaging shopping experiences are driving this trend.
The average size of new retail developments is projected to increase by 30 percent from the previous decade’s average of 391,099 sq. feet to 507,341 sq. feet in the next five years.
“Out of the 88 upcoming retail developments in the next five years, there will be 12 large-sized projects encompassing area of at least one million sq. feet each,” Dr Samantak Das, Chief Economist at JLL said.
“These projects will contribute a substantial portion, amounting to 37 per cent of the total supply expected until 2028,” Dr Das added.
“This marks a notable increase in comparison to the previous decade, where retail centres of one million square feet and above accounted for just 27 per cent of completed supply,” he stated.
“Furthermore, Delhi NCR will see two retail centres of over 2.5 million sq. feet each in the next five years,” Dr Das informed
The growth in retail space is not just about size but also about quality and diversity as the global travel and exposure of Indian consumers have heightened their demand for immersive retail experiences.
Developers are responding by incorporating entertainment, leisure activities, and dining options into their projects, creating comprehensive destinations that cater to modern consumers’ desires.
78 percent of the upcoming retail supply will be lease-based, allowing developers greater control over tenant mix and property management, thus commanding higher rentals.
This approach enables developers to curate a diverse and appealing mix of tenants aligned with their vision for each development.
