Sunday, July 14, 2024

Delhi-NCR Emerges as a Retail Real Estate Powerhouse, Developers Anticipate Prosperity

As Indias retail real estate sector grows vigorously across the country, a recent research report by JLL India has also unveiled promising statistics for the coming years. The report indicates a remarkable retail real estate supply surge across the countrys seven major cities, with developers fueling the expansion post the COVID-19 pandemic. The new supply of retail real estate space is expected to rise 43 per cent across seven major cities by 2027. Delhi-NCR, in particular, has emerged as a frontrunner in this growth, outperforming other regions in various aspects of the real estate market, making it one of the most promising investment hotspots.

Retail Real Estate

“As the report by JLL India confirms, consumers increasing desire for high-quality retail experiences has resulted in a massive boom is investment in the retail segment and is expected to rise higher in the coming years. Due to its distinctive fusion of tradition and modernity, Delhi-NCR’s retail real estate segment is a popular destination for both local and global ventures. We are thrilled about the possibilities for innovation and the chance to influence how retail develops in this area. Delhi-NCR is a hub for trade and industry, offering a favourable environment for companies to grow and prosper. Organised retail has been a sought-after investment option over the past few years and will continue to do so,” says Ms. Radheecka Rakesh Garg, Director, Rajdarbar Realty.

The total operational retail stock in the top seven Indian cities in H1 of 2023 stands at an impressive 89 million square feet. Delhi-NCR boasts the highest share among these cities, with a staggering 28 million square feet of retail space in malls, reaffirming its status as a commercial powerhouse. Delhi-NCR is set to contribute a significant 11.6 million square feet, accounting for a substantial 31% of the expected supply in retail developments anticipated between H2 2023 and 2027 across these top seven cities. This remarkable growth signals the regions strength and potential for investors and developers alike.

“Indias retail real estate sector is poised for remarkable growth. With a projected 43% increase in supply by 2027, as revealed by a recent report from JLL India, Delhi-NCR stands out as a frontrunner among the seven major cities. Much of it is because of a massive thrust by the respective governments to turn the region into a global manufacturing and corporate destination, leading to a surge in retail real estate and enhancing the regions investment prospects,” says Dr. Amish Bhutani, Managing Director, Group 108.

Mr. Deepak Kapoor, Director, Gulshan Group, shared, “The real estate landscape in Delhi-NCR has proven its strength time and again. The citys diverse population and strong economic fundamentals create a favourable environment for retail growth. With a substantial supply of retail spaces in the pipeline, the region is set to witness a vibrant resurgence of its retail sector. The National Capital Region is home to a diverse and growing population, offering a vast consumer base for retail businesses.

The JLL India report reflects what we have observed on the ground- the growing appetite for quality retail experiences. Delhi-NCRs unique blend of tradition and modernity makes it a hotspot for retail investments. We are excited about the potential for innovation and the opportunity to shape the future of retail in this region. Delhi-NCR is a centre for commerce and industry, providing a fertile ground for businesses to thrive and expand,” said Mr. Raj Singh, MD, Navraj Group.

Delhi-NCRs retail real estate market is experiencing a resurgence, with a substantial 31% share of expected retail developments between H2 2023 and 2027 across seven major cities, according to JLL India. The solid economic fundamentals, massive infrastructure development, high ROI, the emergence of the region as a hub of luxury housing and its diverse population create a favourable environment for retail growth,” says Mr. Rajesh K Saraf, MD, Axiom Landbase.

Organised retail in India has witnessed an impressive resurgence, with mall footfalls steadily increasing. The strong demand for high-quality retail spaces has far outpaced supply across major cities, driving up lease rentals. This renewed interest in organised retail further underscores the positive outlook for the industry.

Delhi-NCR’s real estate market has often demonstrated its toughness with its diversified population and solid economic foundation, fostering a climate that benefits retail expansion. The region is poised to experience a thriving rebirth of its retail industry thanks to a sizable supply of retail spaces in the pipeline. A diversified and expanding population makes up the National Capital Region, providing a sizable customer base for retailers,” said Mr. Kunal Bhalla, CEO, CRC Group.

Mr. Pankaj Kumar Jain, Director, KW Group, stated, “The recent report by JLL India confirms the dynamic real estate market in Delhi-NCRs ongoing upward trend. The retail industry in the area has a tonne of potential. Given the rising demand and the construction pipeline, we are confident in Delhi-NCRs capacity to sustain its position as a top retail destination. Due to its advantageous central location, the nation is a perfect economic hub and draws domestic and foreign investors.

Delhi-NCRs stellar performance in the retail real estate sector is not an isolated achievement. It reflects the regions overall resilience and economic strength. The factors contributing to Delhi-NCRs prominence in the real estate arena include its strategic location, robust infrastructure, diverse demography, economic growth, cultural diversity, etc. Developers are capitalising on the increasing demand for organised retail spaces, backed by the strong resurgence witnessed post-COVID-19. With a substantial supply pipeline and positive sentiments from industry leaders, Delhi-NCR shines as one of the most promising investment hotspots in the country, reaffirming its position as a key driver of Indias economic growth.

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