Retail Real Estate Boom: 450 Lakh Sq Ft Space by 2028

New Delhi, Jun 3 (PTI) Nearly 90 retail real estate properties, comprising around 450 lakh square feet of space, are expected to come up by 2028 across seven major cities as builders expect a rise in demand for quality assets from retailers, according to JLL India.

Real estate consultant JLL India highlighted that there would be 12 large-sized projects encompassing an area of at least 10 lakh square feet each. Delhi-NCR will see two retail centres of over 25 lakh square feet each in the next five years.

"The five years, Q2 2024 - end 2028, will see a surge in organised retail space completions. The top seven cities (Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai) in India will welcome around 45 million (450 lakh) sq ft through 88 new retail developments, outpacing the supply of the past decade (2014-2023), which was around 38 million (380 lakh) sq ft," JLL said.

The consultant noted that the upcoming retail developments would be larger in size compared to those that became operational in the last decade.

Over the past ten years, the average size of new retail supply was about 3,91,099 square feet. However, this is expected to increase by 30 per cent to reach 5,07,341 square feet with the addition of new supply during the April-June period of 2024-2028.

"Larger developments incorporating entertainment, leisure activities, and dining options are creating comprehensive destinations that cater to the modern consumer," the consultant said.

According to JLL data, the total stock of retail real estate stood at around 89 million (890 lakh) sq ft till March 2024.

"The existing retail stock, which stands at 89 million sq ft, is expected to grow by 50 per cent and reach 134 million sq ft by end-2028. Delhi NCR is expected to garner the highest share (43 per cent) in the supply in the next five years followed by Hyderabad with a share of 21 per cent and Chennai having a share of 13 per cent," said Rahul Arora, Head of Office Leasing Advisory and Retail Services, India, JLL.