Spaced Out

Organised retail real estate could grow 28% by 2023
Erik Mclean/Unsplash

Contrary to what most doomsayers predicted about malls and street stores, retail real estate across the country is on a rocket-fuel propelled growth trajectory. 

What's even more interesting is that e-commerce giants are now eyeing premium high street locations to enable their loyal discount-hungry customers to visit them in person, for a 'touch-and-feel' buying experience. 

What's Trending?

Organised retail real estate is. Per CBRE's latest report, the organised retail built up space in India has touched 64.3 million sq. ft. as of H1, 2021 and is expected to cross 82 million sq. ft. by 2023, a growth of around 28%. 

Leading the growth are Delhi NCR and Bengaluru, with a projected addition of over 5 million sq. ft. of the overall organised retail real estate.

Hyderabad is expected to add over 3 million sq. ft. of the same. Other top cities will pitch in with their own additions, taking the total space under organised retail to 8.2 crore sq. ft. in the next 2 years.

Is There Demand For Retail Space?

FYI, in-store retail was asphyxiating since the beginning of the pandemic as high-street malls and other outlets were forced to down their shutters. 

But riding on the back of rapid vaccinations and an overall economic recovery, the sector may close the year with a 15-40% revenue growth, depending on category.

🛒 Though the pandemic has accelerated online shopping, word on the high street is that retailers will continue to focus on expansion through stores from here on. 
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