These 14 cities include Chandigarh, Jaipur, Indore, Goa, Mangalore, Kochi, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Vizag, Mysore, and Coimbatore.
The total retail supply recorded in these 14 cities stood at 2.4 mn sq ft during the January to September period leading with cities like Chandigarh, Jaipur and Lucknow. Meanwhile, total retail absorption of spaces across the 14 cities led by Kochi, Jaipur and Goa. Absorption rate is the rate at which retail spaces are sold during a set period of time.
According to the report, several domestic and international retail brands, including Croma, Armani Exchange, Malabar Gold & Diamonds, Reliance Smart, Tanishq, H&M, Marks & Spencer, GAP, Starbucks, Pizza Express, Under Armour, have expanded their retail footprint in this those. cities
The total retail stock in these 14 cities stood at 29 million sq ft as of September 2023, with Jaipur, Lucknow and Chandigarh each boasting retail stock between 3 and 7 million sq ft, according to the report.
Anshuman Magazine, president and CEO, India, Southeast Asia, Middle East and Africa, CBRE, said a combination of greater reach of e-commerce as well as rising aspirations and an increase in discretionary spending is increasing demand for retail spaces in these markets. .
“Investment-grade developers are setting up large-scale contemporary malls in these cities, which are seen as an entertainment destination and not just a place to shop. Most non-metro cities are established commercial and business centers and are now also seeing multinationals and start-ups setting up offices . Growing population in tier II cities is further fueling demand for a diverse range of retail offerings,” he said.
“Ter-II cities have registered massive growth in retail developments over the last three years. India’s first retail REIT has encouraged developers to aggregate and upgrade their existing facilities, besides developing new malls. Moreover, domestic and international fashion brands are looking to expand in non-metro cities, fueled by a well-aware and well-travelled consumer,” said Ram Chandnani, managing director, advisory and transaction services, CBRE India.
Cities like Chandigarh, Jaipur, Goa, Indore, Lucknow have seen an influx of retail development over the past few years.
“Due to the presence of an affluent consumer base, well-planned infrastructure, economic growth, tourism, and the presence of domestic and international retail brands, Chandigarh has grown to become a prominent retail market in Punjab. Chandigarh, along with its sister cities, Mohali, Panchkula, and Zirakpur, has emerged as a prominent retail destination, offering a thriving market for growth and development,” it said.
The city already hosts brands like Zara, Uniqlo, Lifestyle, Shoppers Stop, Marks & Spencer, The Collective, Nike, Adidas, Skechers, Puma, Frontier Raas, Taco Bell, Ritu Kumar among others.
Meanwhile, lower operating costs, a good talent pool and proximity to Delhi-NCR have aided Jaipur’s retail development. Lucknow’s retail business market, on the other hand, is witnessing strong growth driven by several factors, such as rapid urbanization and a growing middle class, increasing consumer spending, the emergence of new malls and high street retail formats and expansion of. domestic and international retail brands.
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Published: 16 Jan 2024, 17:14 IST
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