India Business Journal - 8 top cities to add only a third of retail space demand at 18 mn sq during 2024-27

INDUSTRY

8 top cities to add only a third of retail space demand at 18 mn sq during 2024-27

IBJ Bureau
Sep 23, 2024

Fresh supply of retail space in shopping malls during 2024-27 across eight major cities is expected to be 18 million sq ft, which is one-third of the projected requirement to meet the demand, according to Cushman & Wakefield (C&W).

Real estate consultant C&W in its latest report pointed out that “India's Retail Space Per Capita (RSPC) lags behind other South Asian countries, including Indonesia, Philippines, Thailand and Vietnam.”

This underlines vast potential for expansion of retail spaces, it added.

At present, the total retail space in top eight cities is around 60 million sq ft, and 18 million sq ft is expected to be added during 2024-27.

In the first half of 2024, no new mall became operational.

“To reach a 1.0 RSPC by 2027, comparable to Indonesia – the closest relevant comparison owing to relatively similar per capita incomes – there is a need to construct about 55 million sq ft of mall space over the next four years,” the realty consultant has said.

At present, the forecasted pipeline of Grade-A retail mall projects add up to merely 18 million sq ft through the 2024-27 period.

Saurabh Shatdal, the managing director (capital markets and head retail) of C&W, notes: “India's retail sector is at a pivotal moment. The rising consumer confidence and increasing discretionary spending are clear indicators of the sector’s potential. To capitalise on this growth, it is imperative to address the supply-side challenges and ensure the availability of quality retail spaces.”