India’s commercial real estate market is on the brink of a significant transformation, with the retail sector leading the charge. According to a comprehensive analysis by JLL India, nearly 90 new retail properties are projected to emerge across seven major cities by 2028, contributing an impressive 45 million square feet of space. This surge is indicative of a growing demand for high-quality retail environments, driven by the evolving preferences of modern consumers.
JLL India, a premier real estate consultancy, forecasts a notable increase in organised retail space completions from the second quarter of 2024 through to the end of 2028. The seven major Indian metropolitan areas – Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai – are set to witness the development of 88 new retail projects. This cumulative addition of 45 million square feet significantly eclipses the 38 million square feet of retail space supplied over the previous decade (2014-2023).
The driving force behind this expansion is a shift towards larger retail centres that cater to more than just shopping needs. These new developments are designed to meet the multifaceted desires of today’s consumers, integrating entertainment, leisure, and dining options to create comprehensive destinations. JLL India’s data underscores this trend, showing that the average size of new retail spaces is expected to increase by 30%, from 391,099 square feet in the past decade to 507,341 square feet between 2024 and 2028.
The report from JLL India highlights a concentrated pattern of growth, with Delhi-NCR poised to receive the largest share of new retail space (43%) over the next five years. Hyderabad and Chennai follow, with anticipated shares of 21% and 13%, respectively. This strategic focus aligns with the strong consumer bases and retail growth potential in these regions.
The growing appeal of retail assets to large foreign institutional investors is another key point of JLL India’s analysis. These investors are increasingly drawn to both greenfield and brownfield development opportunities within the retail sector. Notably, JLL India estimates that 16% (or 7.2 million square feet) of the forthcoming retail space will be owned by institutional players, reflecting a robust confidence in the long-term prospects of India’s retail market.
The forecasted growth in India’s retail real estate sector paints a bright future. The influx of new, expansive, and experience-oriented retail spaces is set to meet the evolving needs of consumers while creating lucrative investment opportunities. As developers and investors alike gear up to capitalise on this boom, the commercial real estate landscape in India is poised for a dynamic and prosperous transformation.
