Physical retail surging: 41 million sq. ft of new development is expected by 2028.
- IBEF
- February 8, 2024
The physical retail landscape in India is poised for a substantial boost, with nearly 41 million sq. ft of retail developments slated for operation between 2024 and 2028 across the top 7 cities. This comprehensive supply encompasses projects in various stages, including those under construction and those actively in the planning phase. According to a study by JLL India, Delhi-NCR is anticipated to lead the way, capturing a significant 34% share of this supply, followed by Chennai at 20% and Bengaluru and Hyderabad at 15% each. Notably, foreign institutional investors are actively engaging in retail asset acquisition through greenfield and brownfield development platforms, presently holding around 24% (9.7 million sq. ft) of the upcoming supply to be delivered over the next five years.
In the current retail landscape, operational developments cover 91 million sq. ft across the top 7 cities, and this is projected to surge by 45%, reaching 132 million sq. ft by the close of 2028. This growth is attributed to stable economic conditions fostering consumption-led expansion, enabling retailers to extend their footprint and prompting the announcement of new malls. Simultaneously, mall developers are strategically focusing on constructing larger-sized malls to elevate the overall shopping experience for consumers.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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