Shopping centre space witnessed a 75% year-on-year increase in supply at 3.6 million sq ft across seven key cities in the country during the second half of 2015, compared to the corresponding period of the previous year.
According to the findings of CBRE’s latest report, India Retail Market View for H2, 2015, the retailer demand for store space also remained upbeat across various cities, with prominent global players such as Juicy Couture, Apostrophe, and Carl’s Jr, making inroads into the country. Others such as TM Lewis, Johnny Rockets, Fernando’s and Burger King continued to expand their retail operations in India.
Of the leading seven cities, Delhi National Capital Region (NCR) remained the most preferred point of entry for brands coming to India during the year. The second half of last year also saw the launch of shopping centres including the DLF Mall of India at Noida, Garden’s Galleria at Noida, Virtuous Retail’s VR Mall and ETA Namma Mall in Bengaluru and the Acropolis Mall in Polka.
“As global brands pursue their India entry plans and domestic players continue to expand across the country, the retail real estate market in India will be keenly dependent on a more open Foreign Direct Investment (FDI) policy regime. While challenges still exist, specifically for FDI in multi-brand retail, 2016 is expected to be a buoyant year for the retail market,” Anshuman Magazine, Chairman and Managing Director of CBRE, South Asia Pvt Ltd said. The timely delivery of quality shopping space by developers will also be crucial for the sector to reach its potential of becoming a leading retail market in the geography, he said.