· Retail sales growth linked to increased consumption
· Last year saw Hyderabad and Bangalore to have new malls
· Reveals a report by the ANAROCK and RAI
Following the recovery of the retail sector from Covid-19, new shopping malls are entering the country. According to the prediction, at least 2.5 crore sq. ft. will be added to seven major cities of the country in the next 4-5 years.
According to a report by the property consultants ANAROCK Retailers Association of India (RAI) attribute it to the increase in consumer spending to the growth of the retail sector. Hence, developers are launching new malls.Currently, there are 5.1 crore sq.ft available in seven major cities of the country Mumbai, Delhi-NCR, Pune, Bangalore, Hyderabad, Chennai and Kolkata. Of them, 62% concentrated in NCR, Mumbai and Bangalore, 46% in NCR and Hyderabad and 19% in Bangalore. Last year 26 lakh sq.ft mall space has been created in seven major cities of the country, which is 27% more than that of 2021. Only in Hyderabad and Bangalore, new malls have become available last year.
Demand for space malls did not decrease even though rents have gone up by 15%. This is attributed to the demand for malls compared to the demand for mall space in pre-Covid-19 situation. The last year saw the highest increase in demand for space in Bangalore 27% and Kolkata 20%. During 2019-22, $ 1,473 million were invested in the domestic retail sector, 76% of which came in 2019. Hyderabad and Mumbai accounted for 40% of the private equity (PE) investments.
In 2022, the retail sales volume is estimated to be $ 52 billion dollar. By 2028, it is poised to reach $ 136 billion. Also, the e-retail market is expected to grow by 25-30 % in the next five years and reach $ 120-140 billion by 2026.
$ 2 trillion retail sales predicted
At the end of last year, the RAI estimated that retail sales during the festive season were worth Rs 2.5 lakh crore, which is two and half times more than the retail sales achieved in the previous year. According to the ANAROCK CEO Anuj Kejriwal domestic retail sales will touch $ 2 trillion by 2032 with organising sector crossing a turnover of $ 690 billion by 2021, registering 25% growth. The share of online sales in organized retail sector is 25% and is likely to l increase to 37% by 2030.
