India is expected to add 30 million square feet of shopping mall space to its retail real estate portfolio over the next three years, which is anticipated to further reach the 200 million square feet mark by 2036, a report by real estate data analytics platform CRE Matrix said.
Since the first shopping mall of India was built in 1991, it took 22 years to build 50 million square feet of shopping mall stock in the country, the report highlighted. This was largely led by Delhi-NCR, Mumbai Metropolitan Region and Bengaluru.
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The next leg of growth towards the 100 million square feet milestone, crossed in the first half of 2024, was spearheaded by Delhi-NCR, Bengaluru and upcoming markets such as Hyderabad and Pune, per the report.
Shifting demand patterns
The report also highlighted that between 2018-2024, there has been a systemic shift with the premium/bridge to luxury brands emerging as the strongest occupier across India. In other words, the mid-market segment which earlier dominated the retail spectrum and contributed 38% in 2018 has given way to the value for money and affordable luxury brands.
As per data cited in the report, today, the contribution of brands in the luxury segment has increased from 16% to 21%. The most notable increase has taken place in value for money brands, which have increased their presence from 8% in 2018 to 13% in 2024.
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The report noted that the current brand roster of more than 7,300 brands in India stands to benefit from the upcoming growth and it is imperative that malls, highstreets and brands position themselves in sync with the demand patterns and changing shopping preferences.
The report stated that consumer durables and apparel have emerged as the largest category contributing 36% to the overall Indian retail business across top six cities. Within this, from a business value perspective, the non-ethnic unisex category has ruled the charts since 2018, presently accounting for a 17% share.
Meanwhile consumer staples has emerged as the second largest category, contributing 25% to the business value.
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Successful retail assets have anchored their offerings around a similar proportion of the brand mix, ensuring higher footfalls by carefully curating brands in the right proportion, the report noted.
Furthermore, in line with the changing consumption patterns of India, the jewellery and precious stones segment along with sportswear, and bar and brewery, have doubled their contribution to 11 % over the last 5 years, per data cited in the report.
