Nearly two years after the economic downturn, large retailers are rushing out to book the maximum available land across the country, primarily in tier 2, and 3 towns.
It is expected that 70% of the new retail space will be in the non-metros, particularly in cities such as Jaipur, Kolhapur, Lucknow, Guwahati, Mangalore, Coimbatore, Amritsar, Ludhiana, Indore, Srinagar and Belgaum.
At present, Hyderabad, Pune, Kolkata, Chandigarh and Ahmedabad are highest on the list of retailers moving beyond metros, and hence are likely to face the rush for retail space.
Cities like Surat, Nagpur, Jalandhar and Coimbatore are being viewed as having great potential to emerge as significant retail hubs in the future.
As per media reports, Future Group, Shoppers Stop and Reliance Retail have signed long term lease deals for more than 10 million sqft of retail space.
Both Indian and international brands, are expanding their footprints across the country. Nine chains have announced 200 new retail outlets across India, to be opened during 2011-14.
Announcements in the media about new stores, have Shoppers Stop proposing 24 new outlets, Lifestyle 25, Pantaloons 55, the Bharti Group 20, Tanishq 15, Marks & Spencer 10, McDonalds 30, Hamleys 20 and Mango 6 outlets.
The highest cumulative demand for mall space at 7.7 million sqft will reportedly be seen in Bangalore by 2014. Demand in Mumbai will be at 6.5 million sqft.
In the first half of 2011, National Capital Region, Mumbai, Bangalore and Chennai added more than six million sqft of organised retail mall space, across various primary and secondary locations.
As a result of the huge disparity in the demand and supply, high street rentals too have shot up across the country. Mumbaiís Colaba Causeway has seen a rise of 10-11% in rentals, while malls in Central Mumbai recorded a rise in the range of 18-20%.