With its rich history and contemporary growth, highstreet retail is playing a bigger and bigger role in India’s urban environment. Historically, bustling highstreets have been the host to a multitude of small, scattered boutiques managed by independent designers, family-owned companies, and street vendors. Today, at a time when India’s real estate sector is on the fast lane, highstreet retail comes to the fore as a major factor driving economic dynamism and urban energy. The government’s focus on developing smart cities and initiatives to upgrade urban infrastructure provide an environment that is conducive to the growth of highstreet retail. Highstreet spaces in India are expected to rise significantly in the next several years, according to Cushman & Wakefield, since major developers have big projects planned leveraging their economic acceleration potential. The relationship between highstreet retail and real estate development portends well for India’s urban landscape, both in terms of local economies and consumer experience.
Evolution of Modern Highstreet Experience
India’s highstreet shopping has evolved over the past several years, mostly as a result of growing value consumption and the diversification of retail concepts. Highstreets are now grand shopping destinations with a wide variety of mid-to-premium brands and landmark businesses, having grown from modest traditional marketplaces. In India’s top eight cities, highstreets accounted for around 45% of all luxury retail leases, followed by malls at 40% and independent companies at 15%, according to CBRE’s Annual Report. This illustrates most of the attraction towards highstreets by luxury brands is due to reasons such as visibility and customer engagement. There has been a recent surge in the development of highstreet retail spaces in cities like Delhi, Mumbai, Bengaluru, and Pune. Quintessential example of modern highstreet spaces include, Delhi’s Connaught Place and Bombay’s Kala Ghoda, which blend the quirks of antiquity with the conveniences of contemporary life. Khan Market in Delhi has been ranked as the 22nd most expensive retail highstreet location globally, with monthly rents up to INR 1,500 per square foot. Brigade Road in Bengaluru has become famous worldwide for attracting a myriad of tourists with its inimitable blend of high-end retail and innovative commercial spaces.
According to a JLL India Report, highstreet retail spaces in prominent locations demonstrate greater rental growth and lower vacancy rates compared to traditional malls. This robust rental growth is bolstered by the desirability of these locations, attracting consistent foot traffic and ensuring higher occupancy. A prime example of this trend is Golf Course Extension in Gurgaon, which stands out as one of the best highstreet retail spaces in India. This region has seen significant development by leading real estate developers such as DLF, Godrej, Sobha, Tata Housing, Emaar India, M3M India, Royal Green Realty, Adani Group, and Signature Global. The appeal of Golf Course Extension Road is further enhanced by its unparalleled connectivity, including the Southern Peripheral Road (SPR), Delhi-Mumbai Industrial Corridor (DMIC), Delhi-Jaipur Highway, Faridabad, Sohna Elevated Road, and the upcoming Rapid Metro connectivity. These infrastructural advantages make Golf Course Extension a highly sought-after destination for both retailers and consumers, ensuring sustained rental growth and low vacancy rates.
Sharing his insights, Mr. Yashank Wason, Managing Director, Royal Green Realty said, “Highstreet has long been linked to glistening markets and a bustling street culture that offered Indian residents a vast array of goods, from the most opulent to basic necessities. In addition to becoming popular retail destinations, these neighbourhoods served as social hubs that improved the local economy. Hence, developing flagship projects in the heart of Gurgaon’s highstreet, Golf Course Extension has been a strategic decision for Royal Green Realty. The expansion of Golf Couse Extension has served as a catalyst for the development of better roads, public transit, and metropolitan neighbourhood redevelopment. Over the years, the entire region has benefited from the prominence of this highstreet, since the very name Golf Course Extension has become synonymous with high-end development. Coupled with its unparalleled interconnectivity, this coveted highstreet continues to promote urban growth and proliferate property prices in and around the region.”
Market Trends – Customer Experience and Community Engagement
Highstreet retail has shown to be incredibly resilient and has grown even during economic downturns. According to a previous study by Cushman & Wakefield that looked at market trends and utilized data to form its conclusions, India only has about 13.2 million square feet of highstreet retail space, compared to the 93 million square feet that are dedicated to malls. Despite this difference, consumers may spend nearly three times as much at highstreets as they do at malls. Thus, the fact that there is a consistent and rising demand for highstreet space is not surprising, as shown by statistics released by CBRE. An increasing tendency toward premium and luxury items is reflected in the 0.3 million square feet of space that luxury businesses rented across highstreets in India’s main cities in 2023. With the integration of dining, shopping, and leisure activities, highstreets have developed into emblems of the modern community, offering a whole retail experience. Highstreets are therefore more symbolically expressive to millennials and Gen Z since they value experiences above simple commerce. Pop-ups, food festivals, live music, and art exhibits are being presented to create sensory environments. Among the ways that technology is used in these attempts to improve the shopping experience include interactive displays, augmented reality installations, and customized mobile applications. They therefore provide a lively and captivating setting for activities beyond than basic retail.
Vinay Wadhwa, General Manager – Sales, Vatika Limited said “The Indian high-street experience has been enhanced by better amenities, infrastructure but most important feature is convenience. These areas are easily accessible as the residents stay nearby, adequate parking facilities for easy entry and exit and better public transit. With features like landscaped piazza, pedestrian-friendly pathways, and shaded places, the new urban design encourages customers to spend more time. A prime example of this modern high-street is upcoming V’Lante project located within Vatika India Next township in New Gurugram. With 2 lakh residents in close vicinity and enhanced connectivity with key infrastructure like Dwarka Expressway, NH8, IGI Airport, the Delhi–Meerut Regional Rapid Transit System (RRTS), and the Gurugram Metro Expansion Project, extending the metro line beyond Millennium City Centre Metro Station, V’Lante will be the new high-street retail destination of New Gurugram.”
Strategic Future Outlook
Highstreets are strategically important for both modern urban growth and culture. By bringing in a sizable quantity of walk-in business, they help the local economy by enabling local businesses and individuals to grow their profits and sales. Real estate developers are progressively incorporating highstreet retail into mixed-use complexes since it increases the value of both residential and commercial buildings. The future of highstreet retail in India looks bright because of rising consumer purchasing power and an increasing need for experiential shopping. Government attempts to construct smart cities and modernize infrastructure make highstreet shopping viable. Upscale retail experiences are becoming more and more in demand as a result of the growing middle class and rising urbanization. There are challenges to overcome, such e-commerce platform rivalry and pricey real estate in sought-after locations. The capacity of highstreet retailers to offer unique, immersive experiences and maintain continuous innovation cycles will determine their ability to draw and retain customers in their locations. Highstreet retail integration will be more and more essential to preserving vibrant, sustainable, and economically successful urban environments as cities grow, evolve, and progress.