How res­i­den­tial and re­tail real es­tate add up in In­dia

SYNC Shop­ping op­tions must match lo­cal pur­chas­ing power

HT Estates - - FRONT PAGE - Anuj Puri ht­es­tates@hin­dus­tan­ The au­thor is chair­man ­ ANAROCK Prop­erty Con­sul­tants

Realestateis­no­tas­in­glein­dus­try but con­sists of var­i­ous cat­e­gories/as­set classes, and each be­haves dif­fer­ently at the same time and at dif­fer­ent times. Res­i­den­tial, com­mer­cial and re­tail real es­tate each­serveav­ery­sep­a­rate and dis­tinct pur­pose, re­spond to a dif­fer­ent type of de­mand and at­tract dif­fer­ent types of in­vestors.

How­ever, it is equal­lytruethat all three cat­e­gories are in­ter-re­lated be­cause they all de­pend on ea­chother­to­drive­growth. What dif­fers in the­sethree­as­set­classes are the ticket sizes, in­vest­ment ra­tio­nale, and in­vest­ment hori­zon.To in­vest in ei­ther res­i­den­tial, re­tail or com­mer­cial of­fice real es­tate calls for dif­fer­ent de­greesof­fi­nan­cial ca­pac­ity, risk ap­petite, pa­tience and un­der­standin­gofwhat­drives­growthin each of these as­set classes.

There­la­tion­ship­be­tween­res­i­den­tial and re­tail is par­tic­u­larly in­ter­est­ing. Inany­given­lo­ca­tion, ac­er­tain type of re­tail fol­lows (or some­time­sev­enspawns) acor­re­spond­ing type of hous­ing. An area which pri­mar­ily houses mid­dle-class fam­i­lies will at­tract a lot of un­or­ga­nized or mom n’ popre­tail out­lets, hy­per­mar­kets whichen­abl­e­val­ueshop­ping­for dai­lyneeds, and­mall­swith­alotof main­stream brands. Like­wise, lux­ury hous­ing des­ti­na­tions are most log­i­cally jux­ta­posed with high-en­dretail. At­the­same­time, In­dia’s ur­ban real es­tate land­scape can­not re­ally be clearly de­fined in terms of mid-in­come and lux­ury hous­ing, as a sig­nif­i­cant num­berofres­i­den­tial ar­eas in­ourci­tiesare­home­to­both­mid­dle-class andHNIres­i­dents. This fact hasal­lowed for av­ery­gen­er­ous­band­widthofre­tail­to­be­come fea­si­ble inan­daround­ma­jor­res­i­den­tial catch­ments across the coun­try. Let us ex­am­i­ne­some of the no­table in­stances:

Indi­rana­gar, Ban­ga­lore

The high street re­tail area in this lo­ca­tion is lo­cated in an up­scale res­i­den­tial precinct. The stretch has a good mix of F&B and fash­ion re­tail, at­tract­ing the af­flu­ent pop­u­la­tion near the mar­ket. While the in­her­ent catch­ment of thep­rimeres­i­den­tialar­easi­nand aroundIndi­rana­gar con­trib­utes to the steadily grow­ing foot­falls along this stretch, IT parks and of­fices in the vicin­ity also act as foot­fall drivers­for­thishigh­street shop­ping des­ti­na­tion.

Gal­le­ria Mar­ket, Gur­gaon

Thi­sisanup­scaleneigh­bour­hood shop­ping area jux­ta­posed with one­ofthe­most­de­vel­ope­dar­ea­sof Gur­gaon where plot­ted de­vel­op­ments, res­i­den­tial colonies and high-rise apart­ment com­plexes co­ex­ist. Gal­le­ria Mar­ket has a mix of fash­ion and main­stream re­tail stores of­fer­ing con­ve­nience-based cat­e­gories in ad­di­tion to F&B. Other cat­e­gories in there­tail ten­ant­mix­here­in­clude ap­parel, med­i­cal stores, ac­cesso- ries, sta­tionery and gift stores.

Hi­ranan­dani Es­tate, Powai

This is one of the core South Mum­ba­iar­eas­known­forit­selite high-end res­i­den­tial neigh­bour­hood. Mostoftheshop­per­son­this high street be­long to the im­me­di­ate or nearby catch­ment ar­eas. Breach Candy hosts some of the lega­cy­high­street­brand­sand­has at­tracted a lot of lo­cal high-end fash­ion de­sign­ers, as well.


Real es­tate is not a sin­gle in­dus­try but con­sists of var­i­ous cat­e­gories and as­set classes

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