The India Retail MarketView Report 2017 shows that India is on the first place as per Global Retail Development Index 2017, also surpassing China with 70 new entries and expansions by global and domestic brands across Mumbai, Delhi NCR (National Capital Region) and Bengaluru in the first half of this year.
CBRE South Asia real estate consulting firm launched this report which reveals that several retail developments were completed across select cities, resulting in approximately 1.5 million square feet of fresh supply entering the market.
"During the first half of the year, demand for quality retail space remained robust with a majority of this supply concentrated in Mumbai, Bengaluru, and Delhi-NCR," said the report.
"Our ranking on the 2017 Global Retail Index for developing countries as well as continued investment by private equity players is a demonstration of the sustained preference of international brands to set up, or expand their operations in India," said Anshuman Magazine, Chairman, India and South East Asia, CBRE.
"With several legislations and policies in implementation mode, we are already seeing an increase in consumer and investor confidence. This will have a cascading effect on the retail segment. Overall, the retail real estate will continue to grow and witness healthy demand across tier I and II cities," Magazine stated.
"Several hypermarkets, too, were in the expansionary mode including Big Bazaar which opened new stores in Mumbai, Bengaluru, and Chennai.Clothing retailers such as Max and Pantaloons were also active during the review period," it added.
Vivek Kaul, Head, Retail Services, India for CBRE South Asia said, while global brands continue to evaluate and consider quality retail developments in the top cities, with growing globalisation, smaller cities are also gaining prominence and witnessing traction.
"While high streets such as Connaught Place, Khan Market and South Extension in Delhi and Park Street and Elgin Road in Kolkata witnessed a rental appreciation, rentals in most other high streets remained stable. At the same time, some high streets such as Linking Road in Mumbai and MG Road in Pune saw a marginal dip in rentals," the report added.