EX­PERT SPEAK

Images Retail - - CONTENTS - – By Pankaj Ren­jhen, Man­ag­ing Di­rec­tor – Re­tail Ser­vices, JLL In­dia

HIGH TIMES FOR SOUTH IN­DIA’S THRIV­ING RE­TAIL MAR­KETS

Pankaj Ren­jhen, Man­ag­ing Di­rec­tor – Re­tail Ser­vices, JLL In­dia on why re­tail­ers are at­tracted to South In­dia’s Tier I cities

Var­i­ous in­ter­na­tional fast fash­ion re­tail­ers like H&M, Zara and For­ever 21 now have their stores in Bengaluru, Hy­der­abad and Chennai. Spring­field and Women’s Se­cret en­tered In­dia in 2017 by open­ing their first store in Bengaluru. Mean­while, IKEA has cho­sen to open its first store in In­dia at Hy­der­abad…

The South In­dia re­tail mar­ket and shop­ping mall in­dus­try is wit­ness­ing sus­tained growth over the last few years. The larger cities of Bengaluru, Hy­der­abad and Chennai are at­tract­ing more and more global re­tail­ers, apart from the steady ex­pan­sion by na­tional re­tail­ers. In re­cent times, even Tier II & III cities such as Coim­bat­ore, Vi­jayawada, Madu­rai, Kochi, Mysore, Man­ga­lore, Vishakha­p­at­nam and Trichy have also been see­ing ac­cel­er­ated growth in their re­tail space mar­kets.

Var­i­ous in­ter­na­tional fast fash­ion re­tail­ers like H&M, Zara and For­ever 21 now have their stores in Bengaluru, Hy­der­abad and Chennai. Spring­field and Women’s Se­cret en­tered In­dia in 2017 by open­ing their first store in Bengaluru. Mean­while, IKEA has cho­sen to open its first store in In­dia at Hy­der­abad.

These are re­sound­ing state­ments on the at­trac­tive­ness that re­tail­ers see in the main cities of South In­dia, where both tra­di­tional and or­gan­ised re­tail con­tinue to flour­ish to­gether. While in­ter­na­tional brands cer­tainly per­form well in these mar­kets, there is also a huge de­mand for lo­cal and re­gional play­ers such as Pothys, Neeru’s, The Chennai Silks, Nalli, Sangeetha Mo­biles, etc.

A sig­nif­i­cant sup­ply of qual­ity re­tail de­vel­op­ments is com­ing up in Bengaluru, Hy­der­abad and Chennai over the next few years.

Bengaluru

Bengaluru will have a stock of 10.7 mil­lion square feet by end of 2017, and this is ex­pected to rise to 14.8 mil­lion square feet by 2020. In H1 2017, a ma­jor mall ad­di­tion in Bengaluru was GT Mall at Ma­gadi Road, adding 0.30 mil­lion square feet to the mall sup­ply in the city. Mean­while, the ma­jor high streets of Bengaluru Bri­gade Road, Com­mer­cial Street and Indi­rana­gar – con­tinue to see sus­tained de­mand from re­tail­ers.

Chennai

Chennai has 5.13 mil­lion square feet of re­tail space as of 2017, and around 1.3 mil­lion square feet of fresh sup­ply is ex­pected to be added in 2018. The city’s ma­jor high streets T Na­gar, Anna Na­gar and Ad­yar are equally pre­ferred and ex­pe­ri­ence high leas­ing ac­tiv­i­ties due to the lim­ited num­ber of qual­ity mall de­vel­op­ments cur­rently present in the city.

Hy­der­abad

There has been a steady sup­ply of or­gan­ised re­tail real es­tate in Hy­der­abad.

Over the next 3-4 years, 3.96 mil­lion square feet of mall sup­ply is ex­pected to be added. Mantra Mall at At­ta­pur be­came op­er­a­tional in 2017. As the of­fice and res­i­den­tial sec­tors are wit­ness­ing healthy growth, re­tail in Hy­der­abad is also elic­it­ing re­newed in­ter­est by mall de­vel­op­ers. The sup­ply pipe­line in the city looks promis­ing, and some su­pe­rior grade malls are ex­pected to be de­vel­oped in next few years. Hy­der­abad works equally well for strong lo­cal brands as well as na­tional and in­ter­na­tional re­tail­ers.

L&T Metro Rail is a de­vel­op­ing tran­sit-ori­ented re­tail devel­op­ment at the Metro rail de­pots in the city. Two of these metro mall de­vel­op­ments will be­come op­er­a­tional within the next few months. Hy­der­abad’s ma­jor high streets Begum­pet, Ban­jara Hills, Hi­may­ath Na­gar and Ju­bilee Hills con­tinue to main­tain the at­trac­tive­ness to re­tail­ers and shop­pers.

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