The retail real estate market of NCR is currently going through an unprecedented boom. According to the latest report of Anarock, the vacancy rate in the premium grade A+ and A+ malls of Delhi-NCR has come down to just 0-2 percent. In such a situation, if you want to invest in malls, then forget it because you will not get space.
According to the report, this growth is mainly due to the aggressive expansion of international and national brands, increasing consumer spending and demand for better shopping experience. Footfall in large malls is continuously increasing, which has further strengthened the demand for retail space with premium locations.
Rental value increased by 8 to 12%
If we talk about rental, then the rent in Grade A+ malls has increased by 8-12 percent on an annual basis, whereas in Grade A+ malls this increase has been around 6-8 percent. According to experts, this situation not only reflects strong consumer demand, but also shows that the organized retail sector is expanding rapidly and NCR has become a major hub for big brands. The NCR retail market is in the strongest position compared to other metros in the country. While Mumbai has seen a sharp increase in rents of 15 to 20 percent, NCR has seen steady but strong growth. This makes it clear that NCR remains attractive not only in terms of demand but also in terms of stability and long-term investment.
development of retail space
The report also states that despite the shortage of retail space in NCR, developer confidence remains high and the region is likely to add about 19 million square feet of new retail space by 2031. This incoming supply will not only balance the existing demand, but will also provide opportunities for new brands to enter the market. It also indicates that the expansion of organized retail in NCR is likely to continue for the long term.
Benefits will be available in tier-2 cities also
According to experts, this boom in the retail sector will not be limited only to big cities, but will also see its expansion in suburban areas in the coming time. With the changing urban pattern and development of new residential areas, the demand for retail space will also increase in new areas. This will provide new opportunities to developers and the market will expand further. According to Dinesh Jain MD, Exotica Housing, recently the demand for commercial and retail space has increased rapidly in Noida Expressway and surrounding areas. Big brands are rapidly expanding their network. In such a situation, now people are also investing in retail and mixed landuse plots because along with high end office space and retail, people also get kids, health and entertainment zones here and these are also emerging as one stop destinations.
What do experts say
Pankaj Kumar Jain, Director of KW Group, says that the continuously increasing rents indicate that both consumer spending and footfall remain strong. Due to better location, modern facilities and experience-based shopping in the malls of Ghaziabad, brands are ready to pay higher rents, due to which the gap between demand and supply of quality retail space in the market is continuously increasing. Shailendra Sharma, Chairman, Renox Group, said that the rapid growth of retail and mall culture in NCR will take the commercial real estate sector to new heights in the coming years. Due to the continuously increasing demand for premium retail space at the prime locations of Ghaziabad and Noida, old projects are also being developed in line with the demands of the new era. Not only this, consumers are looking for experience-based destinations and not just shopping. Because developers are also increasing focus on modern facilities and mixed use projects.
Demand for commercial space increased
Atul Vikram Singh, founder of Vision Business Park, said that due to the opening of Noida Airport, the demand for commercial space on Greater Noida and Yamuna Expressway has increased. The market is expected to get some relief from the new projects proposed over the years, but considering the current trends, the level of demand will remain high. Developers are now focusing on more organized and modern retail space, which will further strengthen the retail infrastructure in NCR and create new investment opportunities. Rakesh Singhal Founder ShriKB Group said, “This boom in malls and retail sector in NCR including Noida-Greater Noida is not only a sign of economic growth, but it also reflects the changing consumer lifestyle and new shopping trends. People are now turning to malls not only for shopping but also for entertainment and experience, due to which the scope of organized retail is continuously increasing and there is long-term stability in the market.
Real estate sector in strong times
Himanshu Garg, Director, RG Group said that the retail real estate market of NCR is currently in its strongest phase. Almost zero vacancy in premium malls shows that demand continues to outstrip supply. Especially in emerging areas like Noida and Greater Noida, the demand for commercial and retail space has increased rapidly, mainly due to better connectivity, infrastructure development and increasing population. New supply will definitely be added in the times to come, but considering the current trends, NCR will remain an attractive market for retail investment in the long run.
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