Nearly 25 mn sq.ft of mall space to be added in top 7 cities in next 4-5 years, says report

Driven largely by rising consumption, the rebound in Indian retail market has been favourably impacting retail real estate across the country, finds a joint report by real estate consultants ANAROCK and Retailers Association of India (RAI). 

Buoyed by the growth, developers now plan to add nearly 25 Mn sq ft of new mall space across the Top 7 cities over the next 4-5 years, finds the report titled 'India Retail Real Estate: REvived, REshaped, & REinforced'. The report was released at the Retail Leadership Summit 2023, where ANAROCK was knowledge partner.

NCR and Hyderabad account for nearly 46% of the total new upcoming supply, closely followed by Bengaluru at 19%. Back in 2022, the top 7 cities added over 2.6 Mn sq ft of mall space which was 27% more than the preceding year (2021).

Anuj Kejriwal, CEO & Managing Director - ANAROCK Retail, says, "Sales value estimated during the festive season in late 2022 was INR 2.5 lakh crore, nearly 2.5 times compared to the previous year.”

“Further, the retail market size is expected to touch USD 2 Trillion by 2032, growing from USD 690 billion in 2021, facilitating the organised retail sector to grow at 25% CAGR,” he added. 

Kumar Rajagopalan, CEO, Retailers Association of India (RAI), says, "The report also highlights that the Indian retail sector attracted around USD 1,473 Mn between 2019 and 2022, of which 76% of total investments came in 2019 itself. Among the cities, Hyderabad and MMR accounted for nearly 40% of the total PE investments in the sector."

Major Highlights

• Rentals in malls appreciated by nearly 15%, is higher than the pre-pandemic levels
• The retail sector attracted around USD 1,473 Mn b/w 2019 – 2022
• The share of organised retail doubled - from 9% in FY19 to 18% presently, growing at a CAGR of 20%
• The sales volume of the organised retail segment in FY22 was estimated to be USD 52 Bn and is estimated to grow to USD 136 Bn by 2028 with a CAGR of 17%.
• Online retail market in India is approximately  25% of total organised retail market, likely to be over 37% by 2030
• As per industry estimates, the e-retail market is increasing at 25%-30% annually over the next five years.