Organized retail space supply shoots up by 78%in India
Regardless of the ongoing uncertainty, the retail real estate sector in India made a huge leap during the 2013 period, with some of the top notch international brands entering the Indian domain in key cities. Supply of organised retail real estate in India perked up by 78% Y-o-Y in 2013, owing to the rising demand from retailers, as per CBRE officials.
As per market reports, much of the retail supply in 2013 was focused on Tier II, however, the year 2014 will encounter supply addition in prime hubs of Mumbai and NCR. 2014 will turn out to be a fruitful year for the retail sector, with existing brands likely to ramp up operations and new ones paving their way into Indian markets.
Rental Values-H2 2013
The rental values in second half of 2013 displayed mixed trends across the major cities. The traditional high street markets like Commercial street (Bangalore), Khan Market(Delhi) and Brigade Road(Bangalore), registered a rise in rental values, at Rs 310 per sq ft, Rs 1250 per sq ft and Rs 330 per sq ft respectively.The shopping destinations of South Bangalore and Eastern Mumbai, however, witnessed a steady decline in rental values during the H2 2013, in comparison to its first half.
Retail market in Bangalore
Going by the market reports, Bangalore’s traditional high street market registered a rise in rental values during H2 2013 (at Rs 52/sq ft), in comparison to H1 2013, though rentals in the major shopping hubs of South Bangalore fell off.
Owing to the absence of major mall launches, the retail market in the city is likely to move at a snail pace during the H1 2014, as per experts. In regard to project completions, few projects from 2013 are likely to spill over and come on stream during H1 2014.
The good news is, emerging locations in and around the city are likely to encounter occupier’s interest from different retail formats. Cities like Chennai, Hyderabad and Kolkata observed stability in pricing in major micro-markets, while Pune registered a rise across its high streets, although the mall rental remained stable.
