Retail Realty in India: Evolution & Potential

A Comparison and Contrast with the Emerging Cities of Asia

01“ NCR-Delhi and Mumbai continue to remain lucrative markets” – Shubhranshu Pani, Joint MD – Retail, JLL

RAI JLL Report “Retail Realty in India: Evolution & Potential” explains the trends in Retail Real estate across emerging markets globally – and emerging retail real estate trends in Tier 2 India.

Emerging Asia

GDP Growth of Emerging Asia, US and Euro Area

02

Emerging Asia’s demography – an “endowment” for retail

03Faster rise in income and youth population together aids growth of organised retail

 

 

 

 

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India is at the cusp of this organised retail revolution

 

 

 

 

 

 

 

 

Trend in Emerging Cities

Polarisation of Vacancy in Indian Cities

05Vacancy is higher in average or poor grade malls in India

Higher vacancy rates in NCR Delhi and Mumbai are due to poor occupancy or very high  vacancy rates in average and poor grade malls. A lower vacancy rate in superior grade malls compared to average and poor grade malls indicates an underlying trend of consumers increasingly favouring good-quality malls that offer better lifestyle and entertainment  facilities

Key Takeaways

  • Amongst emerging retail cities of Asia, Indian cities suffer from highest vacancy rate
  • As of 2013, all cities witness a rise in Market Potential, while few have also gained in Maturity
  • Improving infrastructure, in-migration of working-age population, quality mall space availability are key drivers  for lucrative markets
  • Increasing migration of people, rise in commercial activities, good infrastructure, and rising per-capita income act in favour of Ahmedabad and Chandigarh and make them the most promising destination for retail, both in terms of Market Potential and Retail Maturity.
  • Rising Consumerism → High level of growth
  • Improving infrastructure, in-migration of working-age population, quality mall space availability are key drivers  for lucrative markets

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RAI
Retailers Association of India (RAI) is the unified voice of Indian retailers. RAI is a not for profit organization (registered under section 25 of Companies Act, 1956), works with all the stakeholders for creating the right environment for the growth of the modern retail industry in India. RAI is the body that encourages, develops, facilitates and supports retailers to become modern and adopt best practices that will delight customers. RAI has a three charter aim of Retail Development, Facilitation and Propagation.