The Evolving Landscape of India
                     ľhe Evolving Landscape of 
India's Retail Real Estate A 
2024 Maíket Analysis
The Indian retail sector is experiencing a dynamic transformation. With a burgeoning 
consumer base and rising disposable incomes, the demand for modern retail spaces is 
surging. This blog delves into the current state of the Indian retail real estate
market exploring insights from leading firms like CBRE and Colliers, and analyzing 
specific cities like Bangalore, Chennai, and Delhi.
Retail Real Estate Market in India: 
A Flourishing Landscape
According to Ken Research's 2023 report, the indian real estate market report 
residential commercial retail value witnessed a significant upswing in the latter half 
of 2023. Leasing activity for retail space across eight major cities (including Bangalore, 
Delhi-NCR, Mumbai, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad) soared by 
46% compared to the same period in 2022. This translates to a staggering 4.73 million 
square feet of leased space, highlighting the robust demand from retailers.
Key Drivers of Growth:
 Rising disposable incomes: India's growing middle class is experiencing a rise 
in disposable incomes, leading to increased consumer spending and a demand 
for diverse retail experiences.
 Shifting consumer preferences: Consumers are increasingly drawn to modern 
retail formats like shopping malls and high-street locations offering a curated
shopping experience with entertainment and dining options.
 E-commerce boom: The burgeoning e-commerce industry is creating a synergy 
with physical retail stores. "Click-and-collect" options and experience centres are 
driving foot traffic to physical stores.
Market Segmentation:
The Indian retail real estate market can be broadly categorized into three segments:
 Malls: Modern shopping malls are a key driver of growth, offering a premium 
shopping experience with a mix of international and domestic brands.
 High-street locations: Prominent high-street locations in major cities remain 
attractive for retailers due to high foot traffic and brand visibility.
 Standalone retail: Standalone retail stores cater to specific needs and offer a 
more localized shopping experience.
CBRE vs. Colliers: Insights from 
Leading Market Experts
CBRE: highlights the ongoing transformation of the retail sector, emphasizing the 
increasing focus on creating in-store experiences that integrate cutting-edge 
technology, personalized services, and space optimization. This caters to the evolving 
needs of today's tech-savvy consumers.
Colliers: reports on the growing trend of "omnichannel retail," where physical stores 
and online platforms work in tandem to provide a seamless customer experience. This 
integration is crucial for retailers to remain competitive in the digital age.
Looking ahead, both CBRE and Colliers anticipate continued growth in the 
Indian retail real estate market:
 Expansion of organized retail: Organized retail chains are expected to witness 
significant growth, particularly in Tier 2 and Tier 3 cities.
 Focus on Tier 2 and Tier 3 cities: As disposable incomes rise in these cities, 
the
demand for modern retail spaces will increase, creating opportunities for 
developers and retailers.
 Sustainable development: Sustainable construction practices and energy-
efficient features will become increasingly important for developers seeking to 
attract tenants and cater to environmentally conscious consumers.
Retail Real Estate in Bangalore, 
Chennai & Delhi:
Bangalore: This tech hub boasts a vibrant retail real estate market, with Bengaluru, 
Delhi-NCR, and Pune collectively accounting for over 61% of retail space leasing activity 
in the first three quarters of 2023 (CBRE). Malls like Orion Mall and Phoenix Marketcity 
dominate the landscape, attracting leading national and international brands.
Chennai: The Chennai retail real estate market is witnessing steady growth, with a 
focus on both high-street locations and shopping malls. Traditional shopping areas like
T. Nagar coexist with modern malls like Spencer Plaza and Forum Vijaya Mall, catering 
to diverse consumer preferences.
Delhi: Delhi-NCR is a major retail hub in India, housing a mix of established shopping 
districts like Chandni Chowk and Connaught Place alongside modern malls like DLF 
Emporio and Select CITYWALK. Delhi's diverse population and high disposable incomes 
make it a lucrative market for retailers.
Real-time 
Stats:
 As of January 2024, the average retail vacancy rate in India is estimated to be 
around 4.6% (CBRE).
 The fashion and apparel sector accounted for the largest share (34%) of retail 
space leasing in the first three quarters of 2023 (CBRE).
 The Indian retail sector is expected to grow at a CAGR (Compound Annual 
Growth Rate) of 8-10% in
Conclusion
The Indian retail real estate market is on an exciting trajectory, driven by a growing 
consumer base, evolving shopping preferences, and a thriving e-commerce landscape. 
The insights from CBRE and Colliers paint a picture of a market ripe for innovation, with 
a focus on creating engaging in-store experiences, omnichannel retail integration,
and sustainable development practices. As Tier 2 and Tier 3 cities experience rising 
disposable incomes, the demand for modern retail spaces is expected to surge, 
creating opportunities for developers and retailers alike. With continued growth 
anticipated, the Indian retail real estate market holds immense potential to shape the 
future of shopping experiences for millions of consumers.