Retail Sector to Reach $2 Tn in A Decade: To Boost Commercial Realty Development

March 2024: India’s retail industry is on the brink of significant expansion, set to double in value to $2 trillion within the next ten years, as reported by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI).

Another study conducted last year also forecasts the retail sector’s value to reach between $1.1 to $1.3 trillion by next year, showcasing a Compound Annual Growth Rate (CAGR) of 9-11%, marking an increase from its $0.7 trillion valuation in 2019-20.

This surge in the retail sector shall significantly benefit commercial real estate, presenting lucrative investment opportunities in this segment.

“The growth presents abundant opportunities for both business owners and investors. The robust infrastructure development and increasing leasing activity in the National Capital Region (NCR) make commercial real estate in this area an exceptionally promising and profitable investment avenue,” says Sanchit Bhutani, MD, Group 108

“India currently has the 4th largest retail market in the world. India’s real estate market has garnered significant global attention, attracting over $23 billion in investments since 2018. The strategic location of Delhi NCR, including Faridabad and Dwarka, coupled with its large consumer base and robust infrastructure, positions it as a prime market for retailers and investors eyeing the commercial real estate sector. Faridabad’s retail potential has notably improved, according to the Kearney Index. At the same time, Dwarka’s expanding residential and commercial landscape drives demand for commercial spaces, as can be gleaned from the rising property prices in the area,” said Mohit Goel, MD, Omaxe Group.

“As we stand on the brink of a transformative era in retail, with projections indicating a leap to a $2 trillion marketplace within the next decade, it’s imperative to recognise the profound implications for commercial real estate development. At Vegas Mall, we embrace this evolution, viewing it as a catalyst for reimagining the fabric of commercial spaces. Our strategy extends beyond mere physical transactions; we’re cultivating ecosystems where commerce, culture, and community intersect seamlessly. This vision propels us to forge innovative partnerships, integrate cutting-edge technologies, and champion sustainable practices, ensuring that our projects are not only commercially successful but also socially relevant and environmentally responsible. Our commitment to excellence and innovation positions us as pioneers, driving the retail sector towards a future where every development is a landmark, not just in design and functionality but in contributing to a thriving, vibrant society” says Ravinder Choudhary, VP, Vegas Mall

With developers unveiling captivating megastructures as commercial hubs, the future of Delhi NCR’s commercial real estate market appears vibrant. The region is witnessing a notable surge in high streets, standalone commercial outlets (SCOs), and integrated malls featuring office spaces, fostering vertical development of commercial properties.

Moreover, this growth isn’t limited to tier-I cities. Commercial real estate developers are shifting their focus to tier-II and tier-III cities, emerging as new growth hubs. Many companies are relocating to these cities to reduce costs, attracting corporate and industrial entities seeking affordable infrastructure for office spaces, warehouses, co-working spaces, and retail ventures.