Resurgent Retail - Powered by Rising Domestic Consumption

Cushman & Wakefield

...mere 20 MSF of Grade-A malls got added in the last 8 years, despite consumer demand consistently growing stronger during the same period.

Inventory of Grade-A Malls (in MSF) in India across top-8 CRE markets

+18 MSF

+10 MSF

+10 MSF

78.0

73.2

70.2

64.0

60.7

56.1

54.1

50.1

51.1

47.2

43.3

40.0

2016

2017

2019

2021

2018

2022

2023

2020

2027F

2025F

2024F

2026F

Source: C&W India Research

Though improving, the retail space per-capita (or RSPC) is under 1.0 across all major cities, including for markets such as Delhi-NCR and Mumbai where more than 50% of the Grade-A asset concentration lies. India’s RSPC compares poorly even when compared with relatively smaller nations in South Asia such as Indonesia, Philippines, Thailand, or Vietnam. Most of these economies have RSPCs above 1.0, with major cities enjoying a much higher number.

Grade-A Retail Space Per Capita (SF/Capita)

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025F

2026F

2027F

Bangalore Chennai

Delhi NCR Hyderabad

Mumbai

Pune

Pan India

Note: RSPC = Grade-A mall space (in SF) divided by total population

Source: C&W India Research

19