India's Retail Market Space To Expand 50% to 134 Mn Sq Feet by 2028

New Delhi, Jun 3 (KNN) India's retail market is poised for a major expansion, with the existing retail stock expected to surge by almost 50 per cent from 89 million square feet to 134 million square feet by the end of 2028.

The top seven cities - Mumbai, Delhi NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai - will witness the addition of around 45 million square feet of new retail space through 88 upcoming retail developments.

This outpaces the supply added in the previous decade from 2014-2023, which stood at around 38 million square feet.

Delhi NCR is projected to garner the highest share of 43 per cent in the new supply over the next five years, followed by Hyderabad with a 21 per cent share and Chennai with a 13 per cent share.

A notable trend in the retail market is the focus on larger-sized retail developments to cater to modern shoppers seeking unique experiences.

Out of the 88 upcoming projects, 12 will be large-sized, encompassing an area of at least 1 million square feet each, contributing 37 per cent of the total expected supply until 2028.

"This marks a notable increase compared to the previous decade, where retail centres of 1 million square feet and above accounted for just 27 per cent of completed supply," said Samantak Das, Chief Economist and Head Research and REIS at JLL India.

The majority (78 per cent) of the upcoming retail supply will be lease-based, allowing developers greater control over tenant mix and property management, enabling them to command higher rentals and curate a diverse range of tenants aligning with their vision.

With increasing global travel and heightened consumer expectations, larger retail developments incorporating entertainment, leisure activities, and dining options are becoming comprehensive destinations catering to the modern consumer.

(KNN Bureau)