With the second-half of the year perceiving surge in demand for quality retail space in Chennai, Delhi NCR, and Pune; demand from retailers as well as international and domestic brands sustained to support all over the year 2013. According to the recent report of CBRE’s data titled‘India Retail Market View H2 2013’ shows that as more retail categories wanted commercial space in chief shopping centers against the individual high street outlets, the demand in the Delhi NCR and Mumbai markets remained strong from global retailers.
The overall systematized retail supply accounted to approximately 4.7 million sq. ft.in 2013, which was a resilient year-on-year (y-o-y) growth of around 78%, against the entire mall supply of 2.5 million sq. ft. in 2012. It is also observed that Tier II cities contributed to the maximum supply in 2013 and in 2014 key hubs of NCR and Mumbai is expected to see addition in supply.
Anshuman Magazine, Chairman and Managing Director of CBRE and South Asia Pvt. Ltd. remarked on the report by said, “In spite of the ongoing ambiguity, a number of international brands entered and expanded across major cities, due to which the retail segment in the real estate observed good movement in 2013. The year 2014 is likely to linger positive for the retail sector, with existing brands estimated to expand operations and new brands entering India. Even though, domestic retailers performing gradually, they face challenge from global retail groups, particularly in the apparel and food and beverage (F&B) segments.
While few major global players like Krispy Kreme, Dunkin Donuts, Starbucks, Forever 21, Zara, and Super dry extended their operation across the top cities in the country, whereas retailers in the bridge-to-luxury and luxury segments were mostly dynamic and includes brands like Missoni, Brook Brothers, Michael Kors, and Emilo Pucci that are entering the country’s retail market.
During H2 2013, across the top cities the rental values exhibited varied trends. Khan Market in Delhi,besides Brigade Road and Commercial Street in Bangalore regarded as the traditional high street markets saw arise in rental values, while the rental value declined in the shopping hubs of Eastern Mumbai and South Bangalore against the first half of the year. The rental price was stable in micro-markets of cities like Hyderabad, Chennai, and Kolkata, but the high street markets in Pune observed an increase,though its rentals of malls lingered steady.
It is likely that in future new retailers’ entry in a number of chief markets in the country will be restricted due to the limited convenience of quality retail space in major locations such as Delhi NCR, Mumbai, and Bangalore, as in contrary to high-priced rentals. On account of such limitations in quality supply, select developments are likely to see greater than average rise in rentals because of retailer likings for such retail spaces.
The overall systematized retail supply accounted to approximately 4.7 million sq. ft.in 2013, which was a resilient year-on-year (y-o-y) growth of around 78%, against the entire mall supply of 2.5 million sq. ft. in 2012. It is also observed that Tier II cities contributed to the maximum supply in 2013 and in 2014 key hubs of NCR and Mumbai is expected to see addition in supply.
Anshuman Magazine, Chairman and Managing Director of CBRE and South Asia Pvt. Ltd. remarked on the report by said, “In spite of the ongoing ambiguity, a number of international brands entered and expanded across major cities, due to which the retail segment in the real estate observed good movement in 2013. The year 2014 is likely to linger positive for the retail sector, with existing brands estimated to expand operations and new brands entering India. Even though, domestic retailers performing gradually, they face challenge from global retail groups, particularly in the apparel and food and beverage (F&B) segments.
While few major global players like Krispy Kreme, Dunkin Donuts, Starbucks, Forever 21, Zara, and Super dry extended their operation across the top cities in the country, whereas retailers in the bridge-to-luxury and luxury segments were mostly dynamic and includes brands like Missoni, Brook Brothers, Michael Kors, and Emilo Pucci that are entering the country’s retail market.
During H2 2013, across the top cities the rental values exhibited varied trends. Khan Market in Delhi,besides Brigade Road and Commercial Street in Bangalore regarded as the traditional high street markets saw arise in rental values, while the rental value declined in the shopping hubs of Eastern Mumbai and South Bangalore against the first half of the year. The rental price was stable in micro-markets of cities like Hyderabad, Chennai, and Kolkata, but the high street markets in Pune observed an increase,though its rentals of malls lingered steady.
It is likely that in future new retailers’ entry in a number of chief markets in the country will be restricted due to the limited convenience of quality retail space in major locations such as Delhi NCR, Mumbai, and Bangalore, as in contrary to high-priced rentals. On account of such limitations in quality supply, select developments are likely to see greater than average rise in rentals because of retailer likings for such retail spaces.
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