A Comparison and Contrast with the Emerging Cities of Asia
“ 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
- rising economy
- rising income
- rising retail opportunities
- Full text of the Report @ www.rls.net.in/knowledge_zone.html
GDP Growth of Emerging Asia, US and Euro Area
Emerging Asia’s demography – an “endowment” for retail
Faster rise in income and youth population together aids growth of organised retail
India is at the cusp of this organised retail revolution
Trend in Emerging Cities
Polarisation of Vacancy in Indian Cities
Vacancy 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