Chennai leads retail realty growth in H1 2018
The Indian retail real estate market was marked by continuous entry of international brands, launch of retail developments and sustained demand for space in the first half of 2018. India’s top seven cities witnessed an addition of about 1.9 million sq ft of fresh supply led by Chennai, Hyderabad and the National Capital Region (NCR), showed CBRE South Asia report. However, the supply is down 5% from a year ago and that has helped rentals maintain an uptrend. There was an uptick in rental growth not only across a few malls in NCR and Bengaluru, but also high street locations such as Jayanagar and Commercial Street in Bengaluru and Linking Road in Mumbai. The review period witnessed the launch of 1-million-sq-ft VR Mall in Chennai, L&T Hyderabad Next and L&T Next Galleria totaling 6,50,000 sq ft in Hyderabad, and 32nd Avenue with 2,50,000 sq ft space in Gurgaon. “The overall outlook for the Indian retail real estate market continues to be positive at the back of various policy reforms, entry of foreign players and increasing urbanisation. With REITs in the offing, the focus on developing investment grade developments is likely to redefine the retail segment in India,” said Anshuman Magazine, chairman, India & Southeast Asia, CBRE.
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