Bangalore may see boom of hypermarkets

Our Bureau Bangalore | Updated on March 12, 2018 Published on August 16, 2011

Around the corner: Farmers at a hypermarket in Bangalore. A realty consultant has said the city may soon have more such outlets.

Consultant says high streets witness healthy absorption, rising enquiries

Bangalore is witnessing a see-change in its retail set-up with a number of hypermarkets getting operational.

The city is expected to witness addition of 30-35 in three to five years.

CB Richard Ellis, an International real estate consultant, said in its Indian Retail Market View said Bangalore has more than 30 hypermarkets operational in major malls. Projects in the pipeline are 30 to 35, and are expected to alter the market over the next three to five years.

The first half of 2011 witnessed an upswing in transaction activity in the city aided by buoyant economic conditions and positive market sentiment.

Retail mall rentals witnessed growth in prime city micro-markets, while witnessing stability in suburban (supply laden) destinations. Moving ahead, transaction activity and size are expected to increase on the back of increase in consumer spending and expanding mid-income purchasing power.

“A number of leading national and international brands are making a beeline for space uptake in upcoming malls as well as high streets in Bangalore,” the report said.

According to Mr Anshuman Magazine, Chairman and Managing Director, CB Richards Ellis South Asia, “Secondary locations will witness a larger supply in the next two years thus leading to the further expansion of the retail sector. This renewal of activity is a testament that the retail market in India is slowly recovering. With the possibility of the cabinet passing a bill allowing 51 per cent FDI in multi-brand retail, I believe that our economy will attract more international attention and investment in the future.”

High streets in the city have witnessed healthy absorption and rising enquiries from retailers, which is an encouraging sign for the retail market in the city. “This has encouraged developers to tap the growing need of quality space by initiating new mall projects,” the report said.

“Pre-commitments in under construction retail space in prime locations are also an encouraging sign that rental flexibility, along with the minimum guarantee coupled with revenue share model has become more acceptable in the industry.”

Published on August 16, 2011
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