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Retail real estate flourishes in India as investors expect a retail boom post-COVID

The retail sector is seeing growth in Tier II and III markets as both domestic and global brands expand aggressively

In H1 2022, over 70 percent of retail leasing activity was concentrated in Delhi-NCR, Pune, Bangalore, and Hyderabad. Paulose NK/Shutterstock

Investors have had their eyes on India’s commercial real estate for a while in the hope that there would be a robust retail boom post-pandemic, reported Outlook India.

Experts noted that investing in commercial properties such as shops could mean higher ROI for investors. Saransh Trehan, managing director of Trehan Group, shares this sentiment, saying, “Return on investment from commercial spaces is much higher than residential spaces. Owning a shop also means one can start his own business, maybe not at the time of investment, but later in life.”

Trehan added that compared to residential properties, maintenance costs for shops are much lower.

Saurabh Shankar, head of sales and customer relationship management (CRM) at AIPL, also believes that investing in retail property is a good thing to consider and that India’s retail and mall culture will continue to grow.

More: Investment in the Indian property sector increase by 18% in YTD 2022

Moreover, according to the Times of India, commercial real estate, especially the retail and office segments, is in excellent shape, with new projects being launched and stalled projects completing soon.

The retail sector is seeing growth in Tier II and III markets as both domestic and global brands expand aggressively. In H1 2022, over 70 percent of retail leasing activity was concentrated in Delhi-NCR, Pune, Bangalore, and Hyderabad.

It is also necessary for retail portfolios to take into consideration the blurring of physical and digital channels as customers return to physical stores, noted The Economic Times. Future retail real estate must provide simple multichannel alternatives, rapid home delivery, and engaging experiences for consumers.

New opportunities will arise for investors as consumer demand rises throughout the year.

Investing in real estate is a good idea given the current growth prospects and positive sentiments. Next year will likely be another year of growth. For those who prefer long-term value appreciation to quick profits, experts suggest exploring projects and properties in locations poised to become India’s next premier urban destination.

The Property Report editors wrote this article. For more information, email: [email protected].

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