Why developers are shopping for offline retail
Mint explains why: Organized retail space completion will see a significant surge and add nearly 45 million sq. ft between 2024 and 2028-end in the top seven cities. The new addition of space will happen through 88 new retail developments, including shopping malls and large, integrated retail-led projects, according to estimates by JLL India.
The new supply will outpace the supply in 2014-2023, which was around 38 million sq. ft. The upcoming retail projects will also be bigger in size.
In the past decade, the average size of a retail project was around 391,099 sq. ft. This is expected to rise by 30% in the coming years.
Grade A malls have performed well, maintained good occupancy levels, footfall, and conversion rates. Nexus Select Trust, India’s first retail real estate investment trust, is planning acquisitions. Mall developers Phoenix Mills, DLF, Prestige Group and Lulu Group are also looking to expand their portfolios and launch new shopping malls.
Some developers are hopeful of raising capital from institutional investors or partnering with them. Retail assets have been an attractive investment avenue for foreign institutional investors. Around 16% or 7.2 million sq.
ft of the new supply is owned by institutional players. Delhi-National Capital Region (NCR), which has the highest operational retail space (26.7 million sq. ft), is expected to grab the largest share of new supply in the next five years.
It will be followed by Hyderabad and Chennai. The massive supply in Delhi-NCR is mainly due to larger retail projects being planned to address a wide consumer base. Yes.
Read more on livemint.com
