Technology, Private Equity & Govt Policies Drives Retail Space: Report
International property consultancy JLL India released its latest research report on the Indian retail real estate landscape at the CII India Retail Conclave 2017
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International property consultancy JLL India released its latest research report on the Indian retail real estate landscape at the CII India Retail Conclave 2017 in Delhi on Friday (9 June).
Entitled India Retail: ‘Change is the new constant’ the report studies the latest trends and approaches driving this sector in India and globally. It also examines the new regulations and policies which are reshaping the way retail business is done in the country, the rapid-fire impact of technological innovations and the brands which have adopted technology to best advantage.
The report highlights that mall vacancy rates and rental value appreciation in cities like NCR-Delhi, Mumbai and Pune. One completion and six mall withdrawals recorded across the country in Q1 17, taking the total retail sector stock down to 74.6 million square feet.
The retail sector report pointed out that India’s overall vacancy, however, remained unchanged at 14.8 per cent and the good malls have done well. While marginal rental value appreciation was recorded in select submarkets in cities like Delhi-NCR, Mumbai and Pune in the range of 0.5-1.5 per cent on the quarter on quarter basis.
The major highlight of the year for retail sector was an adoption of technology and FDI. The industry witnessed increased private equity due to ease of FDI. While on the technology side retail spaces increasingly adapted virtual world.
Sharing his thought over the report, Pankaj
Renjhen, Managing Director – Retail Services, JLL India said, “We are seeing an unprecedented pace of evolution in Indian retail, with proactive government policies improving the ease of doing business here and thereby attracting more Foreign Direct Investments as well as international brands into the country.”
He added, ”This report encapsulates the latest trends and takes a close look at what the future holds for Indian retail, especially in the light of the rapid innovations in technologies which are bringing retailers closer to their customers than ever before.”
On the other hand, the online or e-commerce players who already established their presence in digital platform shifted their focus on physical store space. Indian retailer also saw international brand expansion in the country with the government giving an ease of doing business in India.
The report comes to several key conclusions. Among these is the fact that with the need to merge online experiences with offline ones, the future of Indian retail will depend on how consumers evolve and retailers adapt. It also observes that the redefinition and reinvention of retail spaces in India to suit the needs of the younger generation is a phenomenon being witnessed in major retail markets across the globe.