The first-half (H1) of 2018 has witnessed an additional 1.9 million square feet of fresh retail supply across the seven key cities, led by Chennai, Hyderabad and the National Capital Region (NCR).
According to CBRE South Asia’s latest report ‘India Retail Market View H1 2018’, H1 saw launch of VR Mall (one million square feet) in Chennai, L&T Hyderabad Next and L&T Next Galleria (totaling 0.65 million square feet) in Hyderabad, and 32nd Avenue (0.25 million square feet) in Gurgaon-NCR.
Global brands make an entry
Leading global brands such as Dyson, Molton Brown, Berluti, American Eagle, Antony Morato, Daniel Wellington and Bath & Body Works made inroads into India with their first stores becoming operational during H1 2018. Looking at expansion trends, International brands such as Tom Tailor, Miniso, Taco Bell, Mango, Marks and Spencer, H&M and Starbucks continued to expand their operations by entering new markets.
Anshuman Magazine, Chairman, India & South East Asia, CBRE said, “the overall outlook for the Indian retail real estate market continues to be positive at the back of various policy reforms, entry of foreign players and increasing urbanisation.”
“We foresee addition of close to around 4 – 5 million square feet of supply during H2 2018 across most major cities such as NCR, Mumbai, Bengaluru, Chennai and Hyderabad. With REITs in the offing, the focus on developing investment grade developments is likely to redefine the retail segment in India,” he added.
Bimal Sharma, Head, Retail Services, CBRE said, “The Indian retail sector stands at the cusp of transformation with the retailers increasingly adapting their store formats to address the needs of different customers / markets and locations. Digitally enhanced store experiences are becoming a reality and such technologies are expected to become a norm in the years to come. Brick & mortar stores & shopping centres will continue to flourish, however retailers & developers will have to realign their formats to deliver to specific expectations of the customers they service.”