Retailer demand for quality shopping space maintained its equilibrium throughout the first half of 2014
CBRE’s India Retail Market View for H1 2014 reports
on the status of organized retail real estate spaces in the country’s leading
cities. Retailer demand for quality shopping space maintained its equilibrium
throughout the first half of 2014; with prominent global players expanding
their footprint across the leading cities. Leasing demand remained focused on
prominent high streets and shopping centers of major cities, as retailers
became more selective about shopping locations due to rising rental values and
The following are the
key points from the report:H1
than 80% drop in organized retail real estate supply over H1 2013. At nearly 0.3 million sq.ft.,
new mall supply addition remained sluggish during the first half of 2014,
dropping by more than 80% over the same period last year. All major retail
projects lined up for completion during H1 2014 were either deferred to the
second half of the year or to H1 2015.
activity in India’s online retail space. A key trend observed during
the period was an increased activity in India’s online retail space. Retailer
brands such as River Island, Dorothy Perkins, and New Look entered into
exclusive tie-ups with leading Indian online retailers for their merchandise
rather than setting up brick-and-mortar outlets.
retailers optimistic on FDI front. Despite the lack of clarity
concerning norms impacting Foreign Direct Investment (FDI) in the retail
sector, hypermarket retailers continued to remain optimistic of the market in
India. During the period, numerous hypermarket chains announced plans to expand
their store presence across the country; while a few others indicated their
keenness for tapping India’s online retail space.
prime shopping markets of major cities displayed rental appreciation. Rental trends displayed
mixed sentiments across cities during H1 2014. While certain traditional high
street markets saw a rise in rental values, other shopping hubs of the country
saw a rental decline. Mall clusters in certain prime markets saw an increase in
rents as global brands preferred such prime shopping locations; while mall
rentals of certain suburban districts of leading cities remained stable.
Magazine, Chairman and Managing Director of CBRE South Asia Pvt. Ltd., commented:
“The second half of
2014 is likely to witness a shift in development completions from the
established retail hubs of Delhi and Mumbai, towards those of Bangalore,
Hyderabad and Kolkata. The availability of quality retail space in the core markets
of Delhi and Mumbai is expected to remain tight, posing a challenge for
retailers with entry plans into key shopping districts.”
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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