As has been the case in the past, the larger cities of Mumbai and NCR-Delhi recorded healthy absorption of residential units during 2012, with a 60% contribution to the overall absorption. Chennai and Pune were among the other two cities that increased their share of absorption during 2012 to 26% from the 23% recorded a year ago.
Learn what is shaping the growth of retail in India in Jones Lang LaSalle India’s recent release: Changing Landscape of Indian Retail – Seven Cities, Seven Horizons.
With FDI now permitted for multi-brand retailing in India, global retail giants are now zeroing in on India. We will see the arrival of multi-brand luxury chains in Delhi NCR, Mumbai, Bangalore and Chennai, with mid-segment retail chains such as Macy’s and Primark focusing on all cities. However, the biggest game-changers and most obvious beneficiaries of the opening up of FDI in retail are the hypermarket chains such as Wal-Mart, Tesco and Carrefour.
The concept of international, standardized luxury floor space must evolve further before India can absorb the demand. Developers must come up with more imaginative ideas of differentiating their luxury malls from the run-of-the-mill. The idea is not to attract mass traffic, but to offer an atmosphere of exclusiveness. In other words, luxury mall developers must learn to eliminate the commonplace components and introduce high-end features in their place.
Luxury retailing implies high profile, strategic locations near high income catchments. If we take the example of Mumbai, nothing less than locations such as Breach Candy, Colaba or Linking Road really make much sense for luxury retail. It is an unfortunate fact that in these very locations, there is really no existing or future scope for organized retail play. In most cases, we are talking about small residential buildings or old tenanted commercial buildings where luxury retail is being created.