Retail real estate to grow by nearly 50% says report

According to a report by JLL, the retail real estate sector in India is all set for big expansion, with the existing retail stock of 89 million square feet expected to increase by nearly 50% and reach 134 million square feet by the end of 2028. 

The report says that Delhi NCR is anticipated to lead the surge in retail space, capturing the highest share of 43 per cent in the supply over the next five years. Following closely behind are Hyderabad with a 21 per cent share and Chennai with a 13 per cent share, according to the JLL report.

The report lists Mumbai, Delhi NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai, which are projected to witness the infusion of approximately 45 million square feet of retail space through 88 new retail developments. 

“This outpaces the supply observed in the past decade (2014-2023), which stood at around 38 million square feet, as indicated by the report,” says the report.

According to Sandeep Chillar, Founder & Chairman, of Landmark Group quoted in reports, the finding shows the indicative growth of a 50 per cent increase in new retail supply in the next five years which is perfectly aligned with the growth trend across cities. 

The report also highlights a growing trend towards larger-sized retail centers, driven by the evolving preferences of modern shoppers who seek unique experiences. Out of the 88 upcoming retail developments, 12 will be large-sized projects spanning at least 1 million square feet each. These projects are expected to contribute significantly, comprising 37 per cent of the total anticipated supply until 2028, says the report.