The retail real estate sector in India is experiencing a significant resurgence, thanks in large part to the influx of global brands into the Indian market. Over the past two years, 24 new global brands have set up shop in cities like Mumbai, Delhi NCR, Bengaluru, Hyderabad, and Chennai.
As of the first half of 2023, the operational retail space in Delhi NCR, Mumbai, Pune, Bengaluru, Kolkata, Chennai, and Hyderabad combined stands at a staggering 89 million sq. ft. Mall retailers in India's tier 1 and tier 2 cities have thrived despite initial post-Covid concerns.
With a burgeoning Gen Z population, a young workforce, increased purchasing power, and a growing GDP, this is an opportune time for investors to consider investing in shopping centers and reaping the rewards.
The Shopping Centres Next 2023 event, held in Bengaluru on October 3, 2023, provided industry leaders, experts, and enthusiasts with valuable insights into the shopping center sector for potential investors. The event's first day shed light on the evolving landscape of shopping malls in India, emphasizing their role as hubs for community, technology, and growth.
India has become a sought-after destination for global brands, thanks to increased consumption, greater institutional involvement, strategic collaborations with Indian retail chains, and a favorable regulatory environment.
Despite the growth of mobile and online commerce, physical stores remain essential for providing experiential shopping and fostering social connections. Shopping centers are evolving into community hubs where people gather not just for shopping but also for entertainment, relaxation, and socializing.
Rajendra Kalkar, President of Malls at Phoenix Mills Ltd., emphasized the value of retail space, highlighting the potential for capital appreciation and annuity income. He projected continued growth in this trend for the next 10-15 years, given India's strong GDP growth compared to China.
Investors were urged to integrate social connections into mall design planning from the outset to ensure that shopping centers become integral parts of the community. Gen Z, in particular, sees shopping centers as the heart of their social needs, including meeting, dining, socializing, refreshing, and spending time.
Jayen Naik, Chief Operating Officer of Nexus Malls, emphasized the significant potential in tier 2 and 3 cities, citing Bhubaneswar as an example. With a median population age of 28-30 years, more than half the population represents future consumers, and as the economy continues to rise, consumption is set to grow further.
He stressed that with thorough research and planning, appealing real estate can be developed in various state capitals, smart cities, and locations across different tiers, providing exciting spaces for all.
© 2023 Rera News. All rights reserved.