The return of consumers to physical shopping destinations is pushing the demand for high-end retail spaces across Delhi-NCR. The post-pandemic era has seen a significant transformation in the consumer’s behavioral pattern which led to the strategic change in the retail industry. However, soon, the sector bounced back with the leasing numbers reflecting the strong traction in retail leasing.
According to a CBRE report, retail leasing activity touched 0.6 million sq ft in Q3 2021 across Grade A malls and high streets, and also witnessed a quarter-on-quarter growth of nearly 165 percent. Leasing activity was led by Hyderabad (38%) and followed by Delhi-NCR (26%) and Bangalore (12%). As per a Bain & Company’s 2021 report, India’s retail sector is one of the fastest-growing in the world projected to touch $1.3 trillion by FY26.
Developers are confident that 2022 will bring more promising results for this segment.
“The robust economic revival, post the second wave of the pandemic, has strengthened the market and consumer sentiments, thereby supporting the retail sector’s growth in quickly reaching the pre-Covid levels. The opening of businesses coupled with the increased consumer demand has fuelled retail leasing across cities. Delhi-NCR has been successful in attracting investors and retailers’ interest and has witnessed improved retail activity. We have leased 10.5 lakh sq. ft. during April 2021 – October 2021, including 7.35 lakh sq. ft. in Delhi NCR comprising Greater Noida and Faridabad,” said Jatin Goel, Director, Omaxe Ltd.
The high street project Omaxe World Street in Faridabad has approx. 200 operational stores comprising local, national, and international brands like Domino’s, Pizza Hut, KFC, W, Red Tape, Numero Uno, Lenovo, Samsung, LG, etc.
Jatin Goel, Director, Omaxe Ltd, added, “We are optimistic that the uptick in consumer and market sentiments will propel leasing activity unless the new coronavirus variant slows this momentum.”
Supportive government policies and low interest rates have also played a pivotal role in supporting the sector’s growth.
Pankaj Bansal, Director, M3M India, said, “As mentioned in many reports, the retail sector is driving the growth and investors are back again. The segment has been on investors’ radar as it is providing assured and stable returns on their investments. As part of NCR, Gurgaon seems to be leading the retail sector. M3M India itself is today the largest developer of retail space in Gurgaon by delivering about 4 million square feet of retail space. Overall, M3M India has delivered 20 million square feet of space.”
While the pandemic augmented the digitalization and e-commerce penetration, the brick-and-mortar stores retained the retailer’s confidence and continued to be an essential component of their strategy.
Talking about the opportunities in prime markets like Gurgaon, Ravish Kapoor, Managing Director, Elan, said, “As we see customer confidence strengthening with stabilizing markets, retail leasing is witnessing an exponential increase in Gurgaon. Today the city has become a shining example of economic prosperity with many of the Fortune 500 multinational companies calling it their headquarters and home buyers displaying an all-time high interest in purchasing luxury properties in the region. Amid such heightened sentiments, retail leasing prices are all set to break the all previous records going forward.”