ANAROCK-RAI Report highlights 25 million sq.ft of mall space to be added in top 7 cities in the next 4-5 years
The year 2022 has witnessed a rebound in Indian retail market which has further fuelled the growth in this segment all across the country, according to a report- ‘India Retail Real Estate: REvived, REshaped, & REinforced’- by ANAROCK and Retailers Association of India (RAI). Enthused by this scenario, the real estate developers are now planning to add over 25 million sqft of new mall space in the next 4 to 5 years across the top 7 cities in the country, the joint report states.
As per the report, NCR and Hyderabad account for over 46% of the total new upcoming supply and it’s followed by Bengaluru at 19%. According to Anuj Kejriwal, CEO and Managing Director, ANAROCK Retail, sales value estimated during the festive season in late 2022 was INR 2.5 Lakh Crore which was approximately 2.5 times compared to 2021. The size of the retail market is expected to reach 2 Trillion USD by 2032. It has grown from 690 billion USD in 2021.
The report highlights that the Indian retail sector has attracted over 1,473 million USD between the year 2019 and 2022. Among the cities over 40% of the total PE investment in the sector were in Hyderabad and MMR. According to Kumar Rajagopalan, CEO, Retailers Association of India (RAI), the top 7 cities added over 2.6 million sq ft of mall space during the year 2022. “The new mall supply were witnessed only in Bengaluru and Hyderabad, among these cities.”
The average rentals in malls have been appreciated by nearly 15% in 2022 over the previous year. Among the cities, Bengaluru registered highest uptick of around 27% in rentals. It was followed by Kolkata at 20%. As per the report, the e-retail market is anticipated to reach 120-140 Bn USD by FY26 — increasing at 25%-30% annually, over the next 5 years.
