According to a recent survey by CBRE South Asia, Chennai the capital city of Tamil Nadu state has recorded the highest number of retail growth in the first quarter of 2018. Falling next in line are Hyderabad and NCR i.e. National capital Region along with other five cities that showcased an additional 1.9 million sq.ft fresh supply of land.
This spurt in Indian real estate sector is a result of continuous pouring in of international brands along with the launch of retail developments and sustained demand for space. The period also witnessed the launch of VR Mall in Chennai that covers 1-million-sq.ft. land, following which L&T Hyderabad Next and L&T Next Galleria covers a total of 6,50,000 sq. ft. land in Hyderabad, and while Gurgaon stands 3rd with 32nd Avenue covering space of 2,50,000 sq.ft.
An upsurge in rental income is a prime reason for the growth in the retail sector and this trend is similar not only for commercial structures like malls in National Capital region but is also same for various plush locations like Jayanagar, Commercial Street in Bengaluru and Linking Road in Mumbai.
Anshuman Magazine, Chairman, India & Southeast Asia CBRE was stated that various policy reforms, pouring of international brands, rapidly growing urbanization, developing investment grade and REIT are some of the reasons that are turning positive for the Indian real estate sector.
The business with international and domestic realtors via leasing space is not only turning good for the Indian real estate sector but their strong presence here is also setting trends. The increasing consumer base and expenditure potential in Tier-II cities has produced huge growth opportunities for the retailers. Also, the expansion of International brands like Tom Tailor, Miniso, Taco Bell, Mango, Marks & Spencer, H&M and Starbucks gave a new dimension to the property market at Pan-India level.
Magazine, chairman India & Southeast Asia CBRE expects nearly 4-5 million sq. ft. of space supply in the second quarter of the financial year 2018-19 in major cities like NCR, Mumbai, Bengaluru, Chennai and Hyderabad.