Hyderabad has 15% share in new retail supply: JLL
India’s organised physical retail market is growing stronger with 41-million-sq-ft of projects which are either under construction or in active planning stage now, and expected to be operational by 2028
Hyderabad: Hyderabad has around 15 per cent share in the new retail spaces coming up across India over the next five years, says real estate consultancy and research firm JLL India. As per its recent report, the organised physical retail market has a robust supply of around 41 million sq ft of retail developments scheduled to be operational between 2024 and 2028 across top seven cities of India.
According to the JLL India report, the new retail supply constitutes projects which are either under construction or in active planning stage. Delhi NCR is projected to have the majority share of 34 per cent, followed by Chennai with 20 per cent, Bengaluru at 15 per cent, Pune and Mumbai at 6 per cent each, and Kolkata at 4 per cent.
Hyderabad has only 10 per cent share in the gross leasing at 0.87 million sq ft of sustained new store openings and pre-commitments. In 2023, about 8.7 million sq ft of gross leasing across malls and prominent high streets was recorded in top seven cities. Bengaluru led the gross leasing with a share of 33 per cent, followed by Delhi NCR with a share of 18 per cent and Mumbai with a share of 17 per cent.
Gross leasing refers to all lease transactions recorded during the period, including confirmed pre-commitments. India remains on the radar of international brands’ expansion plans. A total of 14 new international brands entered India in 2023, up from 11 and eight brands in 2022 and 2021 respectively. A majority of the new entrants this year opened their first stores in Mumbai and Delhi NCR.
Fashion and apparel had the highest share of 40 per cent in the total leasing volume. Super value and value fashion segments have witnessed great traction from leading retailers as they are launching their new formats and expanding in this segment. Other categories that contributed majorly were F&B (16 per cent), entertainment (13 per cent), home & furnishing (6 per cent) and daily needs (5 per cent).
Consumer confidence is getting translated into expansion by retailers to increase their store network and sales. The large foreign institutional investors continue to acquire/ invest in retail assets via greenfield and brownfield development platforms. These investors currently hold around 24 per cent (9.7 million sq ft) of the new supply which will get delivered over the next five years.
“Encouraged by the increased buoyancy of the Indian economy, leading real estate developers have made significant announcements to launch retail developments in the country. A substantial proportion of the upcoming supply is by institutional players,” said Dr Samantak Das, Chief Economist and Head Research & REIS, India, JLL.
