Hyd to account for 21% of total 134 mn sft retail stock by 2028 end
Retail assets remain an attractive investment category for large foreign institutional investors; increasing global travel is leading to a demand for immersive retail experiences
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As of 2024, the retail stock in India stands at 89 million sft. It is expected to grow by 50 per cent to reach 134 million sft by end of 2028. While Delhi NCR is likely to account for the highest share – 43 per cent over the next five years, Hyderabad follows with a share of 21 per cent in the total supply of retail stock, says JLL report.
According to the real estate management company’s research study, the top seven cities - Mumbai, Delhi NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai will welcome 45 million sft through 88 new retail developments, outpacing the supply of the past decade (2014-2023), which was at 38 million sft.
Of the upcoming retail supply of 45 million sft 78 per cent will be lease-based, allowing developers greater control over the quality of the tenant mix, and day-to-day management of the property, thus enabling them to command higher rentals.
“Retail assets remain an attractive investment avenue for large foreign institutional investors, who are increasingly opting for greenfield and brownfield development. Notably, 16 per cent (72 lakh sft) of the new supply is owned by institutional players,” said Rahul Arora, Head - Retail Services, India, JLL.
Arora further said that increasing global travel is leading to a demand for unique retail experiences. “Larger developments incorporating entertainment, leisure activities, and dining options are creating comprehensive destinations to the modern consumer,” he added.
The data also suggests that upcoming retail developments will be larger in size compared to those that became operational in the last decade. Over the past 10 years, the average size of new retail supply was around 391,099 sft. However, this is expected to increase by 30 per cent to reach 507,341 sft with the addition of new supply during Q2 2024 to 2028.
“Out of the 88 upcoming retail developments in the next five years, there will be 12 large-sized projects encompassing area of at least one million sft each. These projects will amount to 37 per cent of the total supply expected until 2028, as against 27 per cent in the last decade,” said Dr Samantak Das, Head - Research, India, JLL.
