BANGALORE: Over the last couple of years, Bangalore’s retail landscape has witnessed an upward spike with several national and international brands setting up shop in the city. Favourable demographics, rising per capita income and easy availability of credit have fuelled the growth of Bangalore’s retail market. Residential catchments in the vicinity benefit from better entertainment for the family, shopping convenience, hospitality options, and higher rentals and capital appreciation for investors.
Ram Chandnani, Deputy Managing Director – South India, CBRE South Asia, elaborates on where these retail hubs are emerging. “The city is witnessing positive leasing activity in Kammanahalli/HRBR Layout, Yelahanka New Township, Whitefield AECS Layout, HSR Layout, Sarjapur Road, Kanakapura Road, the Thanisandra-Hebbal belt, and along Bellary Road.”
Retail space scenario
According to Vestian Global’s ‘Retail Real Estate Market Report – March 2013′, presently, the operational mall space in the city is around 7.65 million sqft. Around 5.67 million sqft of mall space is under construction of which 45 percent is pre-committed, and planned mall space in the city is close to 14 million sqft.
Shrinivas Rao, CEO – Asia Pacific, Vestian Global Workplace Services, explains, “Of the around 14 million sqft of planned mall space, close to 12 million sqft is located in the peripheral areas of the city. Earlier, malls were confined to the Central Business District (CBD) and Secondary Business District (SBD) areas. In the last three years, Whitefield, a peripheral location, has established itself as a definitive retail hub. Our studies reveal that other peripheral regions of the city will follow suit such as the Outer Ring Road – Sarjapur Road belt, Kanakapura Road and Bangalore north, and emerge as retail hubs within the next three to five years.”
Increase in retail activity strengthens the holistic appeal of a residential neighbourhood. A locality which has now become self-sufficient due to proximity to the workplace as well as the presence of a retail establishment, promotes further demand for housing and hence, higher rentals and overall appreciation of capital values.
Ram says, “Residential realty growth in terms of new project launches by Grade-A developers have encouraged first-time buyers to migrate to emerging localities, as they are still affordable compared to the older, more mature markets. This has also led to better connectivity, roads and overall investment in macro infrastructure such as schools, colleges, office complexes, hospitality and eventually, retail formats.”
A spurt in residential development has been witnessed in the north-west quadrant of the city, particularly areas such as Jalahalli, Hesaraghatta and Tumkur Road have come into the limelight since the onset of retail activations in Malleswaram and Rajajinagar,” Rao states.
In certain instances, residential units in integrated developments are also sold on the back of retail space development. “Historically, successful retail hubs have always added to better overall infrastructure development in their respective primary catchments as in the case of retail developments in Koramangala and Malleswaram, among others. However, the retail hubs are known to form only after a particular region becomes populated by way of residential developments to begin with. It is only the mixed-use developments, as seen in Yeshwanthpur, Whitefield and some other upcoming areas which emphasise on retail emergence as one of the selling points for residential developments,” Ram points out.
Benefits for residential belts
Easy access to retail hubs translates to shopping, entertainment and dining convenience.Rao says, “Most of the malls in the city today are largely anchored around a key hyper-market chain or a prominent departmental store addressing the daily needs of a neighbourhood. Further, they also offer fine-dining options and house multiplexes, addressing the leisure needs of the clientele. Some malls also house gaming retailers to attract footfalls and this trend is gradually ascending the ranks, as a key catchment option. All in all, proximity to retail hubs provides a wider variety of convenient options.”