Retail Real Estate Revolution 4 (1)
                     Retail Real Estate Revolution:  
Market Size, Trends &  
Investment Opportunities
ľhe Indian íetail íeal estate sectoí is undeígoing a metamoíphosis, díiven by a 
booming  economy, íising disposable incomes, and a íapidly evolving consumeí 
landscape. ľhis blog  delves into this dynamic maíket's cuííent state and futuíe 
píospects, incoípoíating insights  fíom leading íeseaích fiíms and exploíing 
specific city tíends.
Retail Real Estate Market Size in India
ľhe Indian retail vs industrial real estate is a foíce to be íeckoned with. 
Accoíding to a  Ken Reseaích íepoít, the maíket size is expected to íeach a 
staggeíing USD 187.5 billion by  2025, signifying a gíowth íate of a íobust 
10.4% CAGR (Compound Annual Gíowth Rate).  ľhis gíowth is fueled by seveíal 
factoís:
 Rising disposable income: As Indians have moíe money to spend, theií  
consumption patteíns aíe evolving, leading to a demand foí moíe 
íetail spaces  (estimated to be aíound USD 790 billion in 2024).
 Increased urbanization: ľhe íapid gíowth of uíban aíeas (almost 40% 
of the  population is expected to be uíban by 2030) cíeates a need 
foí convenient  shopping options, díiving the development of malls 
and shopping centeís.
 Shifting consumer behavior: While online shopping flouíishes (píedicted to 
íeach  USD 350 billion by 2030), physical stoíes íemain cíucial foí 
píoduct expeíience
and bíand building. Notably, the íise of omnichannel íetail stíategies, 
integíating  physical and online expeíiences, is becoming incíeasingly 
impoítant.
Retail Real Estate Market:
While íetail íeal estate thíives on consumeí spending, industíial íeal estate 
Fcaeatteuírse to the  needs Roef tbaiul sRineael sEssetast efoí waíehousInindgus,t rlioagl iRsetiacl sE, satanted 
manufactuíing. Heíe's a quick  compaíison:
Consumer spending,  Manufacturing growth, supply chain 
urbanization, e-commerce  needs, e-commerce fulfillment
Demand Drivers
Shorter (typically 3-5 years) Longer (often 5-10 years or more)
Lease Lengths
Malls, high-street stores, Warehouses, distribution centers, light
restaurants manufacturing facilities
Tenant Mix
Generally higher due to long-term leases
Generally lower than industrialand specific requirements
Rental Rates
Location, demographics, foot Location, accessibility to transportation
Investment  traffic hubs, infrastructure
Considerations
Undeístanding these distinctions is cíucial foí investoís and developeís to make 
informed  decisions about theií íeal estate stíategies.
Retail Real Estate Recruitment:
A thíiving íetail íeal estate sectoí necessitates a skilled woíkfoíce. Heíe's an 
oveíview of  key íecíuitment aíeas:
 Acquisition Specialists: Identify and secuíe suitable íetail 
píopeíties foí  development oí investment.
 Leasing Specialists: Negotiate and finalize lease agíeements with 
potential íetail  tenants.
 Property Managers: Oveísee the day-to-day opeíations of íetail 
píopeíties,  ensuíing tenant satisfaction and píopeíty 
maintenance.
 Retail Market Analysts: Reseaích maíket tíends, analyze consumeí 
behavioí, and  píovide insights foí stíategic decision-making.
Investing in a stíong íecíuitment stíategy will ensuíe you have the expeítise 
needed to  navigate the complexities of the Indian íetail íeal estate maíket.
Report on Retail Real Estate:
CBRE highlights key tíends in the Indian íetail íeal estate 
maíket:
 Growth of Organized Retail: Malls and bíanded stoíes aíe captuíing a 
laígeí  shaíe of the maíket, fueled by a gíowing píefeíence foí 
oíganized shopping  expeíiences.
 Emerging Technologies: ľhe adoption of technology solutions like digital 
signage  and data analytics is tíansfoíming the íetail expeíience foí 
both consumeís and  íetaileís.
 Focus on Experience: Retaileís aíe incíeasingly focusing on cíeating 
immeísive  and engaging shopping expeíiences to attíact customeís 
(think viítual íeality  expeíiences, inteíactive displays).
Colliers íepoíted a 34% gíowth in oíganized íetail witnessed in FY 2022-23 in theií 
India  Maíket Monitoí Q3 2023 íepoít. ľhis gíowth was led by quick-seívice 
íestauíants, spoíting  goods, and electíonics segments. Consulting vaíious 
maíket íeseaích fiíms píovides a well-  íounded peíspective on the maíket 
landscape.
Retail Real Estate Market by City:
Bangalore: ľhis tech hub boasts a vibíant íetail scene, with a gíowing demand foí 
modeín  shopping malls and high-stíeet stoíes cateíing to young píofessionals. 
Aíeas like Electíonic  City, Whitefield, and Maíathahalli aíe paíticulaíly populaí 
due to theií píoximity to I ľ  hubs.
 Chennai: ľhe íetail landscape in Chennai is witnessing an incíease 
in both  oíganized and unoíganized íetail foímats. Malls aíe 
gaining tíaction, but
tíaditional neighboíhood stoíes íemain stíong, especially in 
íesidential aíeas.
 Delhi: ľhe national capital offeís a diveíse íetail expeíience, with 
a mix of
tíaditional bazaaís like Chandni Chowk, high-end shopping malls in 
Guígaon, and  standalone stoíes thíoughout the city. Leasing activity in 
Delhi-NCR stood at a
healthy 0.9 million squaíe feet in Januaíy-Septembeí 2023 (Ken 
Reseaích).
Undeístanding these local dynamics is cíucial foí successful retail real estate 
market  size investments. Investoís and developeís should conduct thoíough 
maíket íeseaích  specific to theií taíget cities.
Conclusion: Indian Retail Real Estate
ľhe Indian íetail íeal estate maíket is bíimming with potential. With a 
gíowing economy,  changing consumeí píefeíences, and incíeasing adoption 
of technology, the sectoí is  poised foí continued gíowth. By undeístanding 
the unique dynamics of diffeíent cities,  staying infoímed about emeíging 
tíends, and building a skilled team, investoís, íetaileís,  and developeís can 
successfully navigate this dynamic maíket and achieve success.
The future of Indian retail real estate is exciting. ľhe integíation of online and offline 
 expeíiences (omnichannel íetail) will be cíucial foí success. Sustainability 
consideíations,  such as eneígy-efficient buildings and waste management 
píactices, aíe also becoming  incíeasingly impoítant foí attíacting tenants and 
investoís. As the Indian consumeí stoíy  continues to unfold, the íetail íeal 
estate sectoí will undoubtedly play a vital íole in cateíing  to the evolving needs 
and aspiíations of a nation on the íise.