Resurgent Retail - Powered by Rising Domestic Consumption
Cushman & Wakefield
If the top 8 cities combined were to reach an RSPC for 1.0 (equivalent to that prevalent in Indonesia currently), there is a need of an additional 55 MSF of quality Grade-A malls.
For 55 MSF to be delivered over the next five to six years, when India’s per-capita GDP is expected to reach closer to that of Indonesia’s recent year GDP per capita, the top-8 cities will need to collectively add Grade-A malls at the rate of 9 to 11 MSF per annum. This is nearly 3.5-4.5X of the capacity addition over the last eight years. Such a quantum of builds would necessitate all stakeholders within the retail real estate fraternity (i.e. developers, institutional investors, and REITs) to jointly deploy resources. At the same time, government should play an enabling role to facilitate ease of doing business.
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