Title: Insights into the Retail Real Estate
1Retail Real Estate Revolution Market Size,
Trends Investment Opportunities
lhe Indian Ãetail Ãeal estate sectoà is
undeÃgoing a metamoÃphosis, dÃiven by a booming
economy, Ãising disposable incomes, and a Ãapidly
evolving consumeà landscape. lhis blog delves
into this dynamic maÃket's cuÃÃent state and
futuÃe pÃospects, incoÃpoÃating insights fÃom
leading ÃeseaÃch fiÃms and exploÃing specific
city tÃends.
Retail Real Estate Market Size in India
lhe Indian indian real estate market report
residential commercial retail value is a foÃce to
be Ãeckoned with. AccoÃding to a Ken ReseaÃch
ÃepoÃt, the maÃket size is expected to Ãeach a
staggeÃing USD 187.5 billion by 2025, signifying
a gÃowth Ãate of a Ãobust 10.4 CAGR (Compound
Annual GÃowth Rate). lhis gÃowth is fueled by
seveÃal factoÃs
2- Rising disposable income As Indians have moÃe
money to spend, theià consumption patteÃns aÃe
evolving, leading to a demand foà moÃe Ãetail
spaces (estimated to be aÃound USD 790 billion
in 2024). - Increased urbanization lhe Ãapid gÃowth of uÃban
aÃeas (almost 40 of the population is expected
to be uÃban by 2030) cÃeates a need foÃ
convenient shopping options, dÃiving the
development of malls and shopping centeÃs. - Shifting consumer behavior While online shopping
flouÃishes (pÃedicted to Ãeach USD 350 billion
by 2030), physical stoÃes Ãemain cÃucial foÃ
pÃoduct expeÃience - and bÃand building. Notably, the Ãise of
omnichannel Ãetail stÃategies, integÃating
physical and online expeÃiences, is becoming
incÃeasingly impoÃtant. - Retail Real Estate Market
- While Ãetail Ãeal estate thÃives on consumeÃ
spending, industÃial Ãeal estate cateÃs to the
needs of businesses foà waÃehousing, logistics,
and manufactuÃing. HeÃe's a quick compaÃison
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
UndeÃstanding these distinctions is cÃucial foÃ
investoÃs and developeÃs to make informed
decisions about theià Ãeal estate
stÃategies. Retail Real Estate Recruitment A
thÃiving Ãetail Ãeal estate sectoà necessitates a
skilled woÃkfoÃce. HeÃe's an oveÃview of key
ÃecÃuitment aÃeas
3- Acquisition Specialists Identify and secuÃe
suitable Ãetail pÃopeÃties foà development oÃ
investment. - Leasing Specialists Negotiate and finalize lease
agÃeements with potential Ãetail tenants. - Property Managers OveÃsee the day-to-day
opeÃations of Ãetail pÃopeÃties, ensuÃing tenant
satisfaction and pÃopeÃty maintenance. - Retail Market Analysts ReseaÃch maÃket tÃends,
analyze consumeà behavioÃ, and pÃovide insights
foà stÃategic decision-making. - Investing in a stÃong ÃecÃuitment stÃategy will
ensuÃe you have the expeÃtise needed to navigate
the complexities of the Indian Ãetail Ãeal estate
maÃket.
Report on Retail Real Estate
CBRE highlights key tÃends in the Indian Ãetail
Ãeal estate maÃket
4- Growth of Organized Retail Malls and bÃanded
stoÃes aÃe captuÃing a laÃgeà shaÃe of the
maÃket, fueled by a gÃowing pÃefeÃence foÃ
oÃganized shopping expeÃiences. - Emerging Technologies lhe adoption of technology
solutions like digital signage and data
analytics is tÃansfoÃming the Ãetail expeÃience
foà both consumeÃs and ÃetaileÃs. - Focus on Experience RetaileÃs aÃe incÃeasingly
focusing on cÃeating immeÃsive and engaging
shopping expeÃiences to attÃact customeÃs (think
viÃtual Ãeality expeÃiences, inteÃactive
displays). - Colliers ÃepoÃted a 34 gÃowth in oÃganized
Ãetail witnessed in FY 2022-23 in theià India
MaÃket Monitoà Q3 2023 ÃepoÃt. lhis gÃowth was
led by quick-seÃvice ÃestauÃants, spoÃting
goods, and electÃonics segments. Consulting
vaÃious maÃket ÃeseaÃch fiÃms pÃovides a well-
Ãounded peÃspective on the maÃket landscape.
Retail Real Estate Market by City
- Bangalore lhis tech hub boasts a vibÃant Ãetail
scene, with a gÃowing demand foà modeÃn shopping
malls and high-stÃeet stoÃes cateÃing to young
pÃofessionals. AÃeas like ElectÃonic City,
Whitefield, and MaÃathahalli aÃe paÃticulaÃly
populaà due to theià pÃoximity to Il hubs. - Chennai lhe Ãetail landscape in Chennai is
witnessing an incÃease in both oÃganized and
unoÃganized Ãetail foÃmats. Malls aÃe gaining
tÃaction, but - tÃaditional neighboÃhood stoÃes Ãemain stÃong,
especially in Ãesidential aÃeas. - Delhi lhe national capital offeÃs a diveÃse
Ãetail expeÃience, with a mix of - tÃaditional bazaaÃs like Chandni Chowk, high-end
shopping malls in GuÃgaon, and standalone stoÃes
thÃoughout the city. Leasing activity in
Delhi-NCR stood at a - healthy 0.9 million squaÃe feet in
JanuaÃy-Septembeà 2023 (Ken ReseaÃch).
5Conclusion Indian Retail Real Estate
UndeÃstanding these local dynamics is cÃucial foÃ
successful retail real estate market colliers
investments. InvestoÃs and developeÃs should
conduct thoÃough maÃket ÃeseaÃch specific to
theià taÃget cities.
lhe Indian Ãetail Ãeal estate maÃket is bÃimming
with potential. With a gÃowing economy, changing
consumeà pÃefeÃences, and incÃeasing adoption of
technology, the sectoà is poised foà continued
gÃowth. By undeÃstanding the unique dynamics of
diffeÃent cities, staying infoÃmed about
emeÃging tÃends, and building a skilled team,
investoÃs, ÃetaileÃs, and developeÃs can
successfully navigate this dynamic maÃket and
achieve success. The future of Indian retail
real estate is exciting. lhe integÃation of
online and offline expeÃiences (omnichannel
Ãetail) will be cÃucial foà success.
Sustainability consideÃations, such as
eneÃgy-efficient buildings and waste management
pÃactices, aÃe also becoming incÃeasingly
impoÃtant foà attÃacting tenants and investoÃs.
As the Indian consumeà stoÃy continues to
unfold, the Ãetail Ãeal estate sectoà will
undoubtedly play a vital Ãole in cateÃing to the
evolving needs and aspiÃations of a nation on the
Ãise.