India will need 55 million square feet retail space to meet the growing demand

India will need atleast 55 million square feet (MSF) of Grade- A mall space over the next four years to keep pace with the market and align with other south Asian economies on the basis of Retail Space Per Capita (RSPC). According to Cushman & Wakefield, RSPC is Grade A mall space divided by the total population. The report also highlights the increasing attractiveness of the Indian market for international retailers , many of whom are planning to enter the market.

“The rising consumer confidence and increasing discretionary spending are clear indicators of the retail sector’s potential. To capitalize on this growth, it is imperative to address the supply-side challenges and ensure the availability of quality retail spaces,” said Saurabh Shatdal, Managing Director, Capital Markets, and Head Retail, Cushman & Wakefield. AT Kearney’s Global Retail Development Index of 2023 states that the “urgency for global retailers to enter and expand” in India is very high given the macroeconomic growth, income increase, favourable government initiatives, a strong digital payment ecosystem and improved infrastructure.



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Gupta, Professor: Department of Finance and Business Economics, University of Delhi View Program Office Productivity Advanced Excel Course - Financial Calculations & Excel Made Easy By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Marketing Performance Marketing for eCommerce Brands By - Zafer Mukeri, Founder- Inara Marketers View Program Finance A2Z Of Finance: Finance Beginner Course By - elearnmarkets, Financial Education by StockEdge View Program Finance A2Z Of Money By - elearnmarkets, Financial Education by StockEdge View Program Legal Drafting Commercial Contracts and Dispute Resolution By - Shafaq Uraizee Sapre, Managing Partner: Mumbai, Chandhiok and Mahajan View Program According to the report, the average number of global brands entering India has surged from a pre-COVID yearly average of 12 to 25 as of 2024, signifying a growing confidence in the country’s retail potential. Over the last eight years, India’s retail sector has witnessed an average of a mere 2.5 million sq ft of Grade-A mall developments commence operations.

This means, merely 20 msf of Grade-A malls got added in the last 8 years, despite consumer demand consistently growing stronger during the same period. India’s total Grade-A mall inventory, currently stands at 61 MSF across top 8 cities, translating to a mere 0.5 SF of RSPC, which is much lower even when compared with smaller countries such as Indonesia, the Philippines and Vietnam.

This low mall penetration is the reason why vacancies in existing Grade-A malls are at its lowest level across top real estate markets. To reach a 1 RSPC by 2027, comparable to Indonesia- the closest relevant comparison owing to relatively similar per capital incomes, there is a need to construct approximately 55 million square feet of mall space over the next four years. At present, the forecasted pipeline of Grade-A retail mall projects add up to merely 18 msf through 2024-27 period.

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