Malls, high streets see wave of development as organized retail sector grows in India
27 March 2023, Mumbai
The expansion and development plans of leading mall operators, as well as the increasing focus on high streets for retail spaces, indicate a positive trend in India's organized retail sector. India's leading malls are embarking on big development and construction plans to cater to the growing demand for quality retail space.
As organized retail penetration increases further due to higher disposable income, shopping malls are likely to benefit the most from this shift. Consumption in malls across the top eight cities is expected to report a 29% CAGR over FY23-28.
Cushman & Wakefield's analysis shows that India's top three cities will need 9 million square feet of retail space annually till 2027 to match the retail space per capita (RSPC) with that of any small country. The increased demand for quality retail space and the potential for significant growth in the organized retail sector is leading to a wave of development and construction activities across India's malls.
The increased demand for quality retail space is not limited to malls alone, as high streets in several cities are also being developed for retail spaces.
According to a recent report by Anarock, India's organized retail sector is expected to grow at a CAGR of 25-30% over the next five years, driven by rising income levels, changing consumer preferences, and the growing adoption of e-commerce. The report also highlights that India's retail sector is expected to reach $1.3 trillion by 2025, making it one of the largest retail markets in the world.
With the retail industry bouncing back post-Covid, brands have found it challenging to lease space, making it an opportune time for mall operators to expand.
