Chennai: India’s retail mall space is set to rise to 95 million square feet by 2021 from present 75 million square feet in the top seven cities, a report said.
NCR, Hyderabad and Bengaluru will lead the supply, said the ninth edition of the report titled ‘Malls of India’.
The report said India is poised to become the third largest consumer market, with consumer spending growing to $6 trillion (Rs 421 trillion roughly) by 2030 from $1.5 trillion (approximately Rs 105 trillion) at present. This consumption would be shaped by 90 million new millennial-led households and nearly 370 million Gen-Z consumers.
On a pan-India basis, India’s retail space is set to rise to 120 million square feet over the next three years from 100 million square feet now in Grade A mall space, said director and head, Anarock Consulting Services, Ashutosh Limaye.
Limaye stated that about 50 per cent malls invested into by PE Funds in the last three years are in non-metro cities such as Ahmedabad, Amritsar, Bhubaneswar, Chandigarh and Indore.
Significant supply is also expected in tier-II and tier-III cities, driven by increasing urbanisation, infrastructure investment and increased consumer spending, the report said.
According to the report, India’s retail real estate sector is witnessing growing investments by leading private equity funds and institutional investors at the back of growing consumer demand, stable economic and political environment and quality retail real estate development.
To fuel this development, some of the key investors including Blackstone, Canada Pension Plan Investment Board, GIC Private Ltd and the Xander Group are actively pursuing investment opportunities, reports state.