Being on hold for two years, the retail sector in India is bouncing back with strong ROIs, says a new report by Anarock. Around 31 new malls will come up by 2023-end, inviting massive footfalls and generating jobs. The study states, shopping malls will house around 76 per cent more retail spaces this year as compared to the previous year. Around 15 new malls are scheduled to open by the end of this year, while 16 others would be operational by the end of 2023. This would create a huge opportunity for developers and investors besides boosting employment in various regions.
Malls emerge new investment destinations
The upcoming malls are scheduled to open in 12 Tier I, II and III cities including Chennai, Bengaluru, Ahmedabad, Hyderabad, Mumbai, Pune, Baroda, Badaun, Indore, Nagpur and Udaipur. As per Amit Jain, Director, Mahagun Group, malls have emerged the ideal investment destinations. Rising consumer demands are boosting footfalls, creating a new demand for commercial spaces. This is benefitting CRE to a great level, adds Jain.
Ajendra Singh, VP-Sales & Marketing, Spectrum Metro, notes, commercial real estate is witnessing immense development in Tier I cities. Favorable returns are attracting retailers to invest in such projects, he adds. The prominent positioning of these projects also plays an important role in attracting developers to plan more such developments, Singh observes.
Research show, new malls being constructed on approximately 10.15 million sq. ft. area in Tier I, II and III cities are likely be to operational by 2022-end. Of the 31 malls expected to open this year, four malls will be located in Chennai, covering approximately 2.55 million sq. ft. area.
Dushyant Singh, Director, Orion One 32 opines, the strong positioning of commercial real estate post COVID, is likely to boost jobs on a massive scale. The moving of developers to Tier II and III cities with high-scale projects will boost the region’s economy thereby creating new employment opportunities, affirms Renu Singh, President - Sales & Marketing, Spaze Group.
