Real Estate

Retail expansion up, says CBRE report

Our Bureau Mumbai | Updated on July 31, 2012

Leading brands and retailers are pursuing expansion plans aggressively to increase their presence across key retail hubs.

A report from global property consultant, CB Richard Ellis, said retail mall rentals saw growth in prime city micro-markets of Delhi, while values in high streets increased in Mumbai, Bangalore and Pune.

This can be attributed to the heightened interest by retailers coupled with a low base of supply addition as developers continue to focus on attracting tenants in completed projects and reducing current vacancy rather than launching new projects.

About 1.12 million sq.ft. of mall supply was added in H1, 2012 (largely in Bangalore), which was less than 20 per cent of almost six million sq ft added during the same period last year, .

Mr Anshuman Magazine, Chairman, CBRE- South Asia, said, “The rising level of activity in retail space across key cities is testimony to the growing confidence of domestic and international retailers in India. Retailers are looking to expand their operations beyond the top three cities to include the likes of Hyderabad, Chennai, Kolkata and Pune and Chandigarh due to growing urbanisation and an increase in the acceptance of organised retail.”

Going ahead, transaction activity and size are expected to increase on the back of higher consumer spending and expanding mid-income purchasing power. The anticipated changes in the FDI regime should propel the demand for organised retail space further, he added.

sshanker@thehindu.co.in

Published on July 31, 2012

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