The retail sector may have made a rapid shift to e-commerce platform during the pandemic, but brick and mortar stores are back with an expected of growth of 16 per cent in FY23. With higher footfalls and sales at stores reaching 80 per cent of pre-covid levels, 31 new malls are in the pipeline for Indian consumers in the next couple of years. Despite a 10 per cent increase for rent at malls, rentals for business districts known as high-street have also surged by up to 50 per cent.
The top eight cities of India, led by IT hub Bengaluru, have increased a demand for space in streets with most shops and businesses, driving up rent in those places. The second highest jump in rentals for main streets came in Delhi and the National Capital Region at 31 per cent, while Mumbai followed with a 25 per cent hike. Connaught Place in Delhi enjoyed demand from the likes of Samsung and Japanese retailer Uniqlo, who have opened flagship stores there.
The capital also saw arrival of other global brands such as Canada's Tim Hortons, while Mumbai's rent is stable and demand for malls is growing. Following the national, financial and IT capitals, Hyderabad, Chennai and Ahmedabad also clocked 20 per cent, 7.4 per cent and 4 per cent growth respectively.
