BANGALORE: With availability of land and prices at a premium in the city center, growth is shifting towards the peripheries, where connectivity has led to the opening up of localities. With commercial and industrial realty development taking place in the Outer Ring Road (ORR) corridor and beyond, rapid residential expansion has followed. This has led to the emergence of retail in these developing areas.
Emerging retail hubs
According to Vestian Global Workplace Solutions’ retail analysis, presently, around 7.65 million sqft of mall space is operational in Bangalore of which 3.68 million sqft is in the Peripheral Business District (PBD). Of the approximately 5.67 million sqft of under-construction mall space, close to four million sqft is coming up in the PBDs of Hosur Road, Whitefield, Bangalore north, Kanakapura Road, Tumkur Road and Old Madras Road. Around 11.97 million sqft of a total 13.79 million sqft has been planned in the PBDs.
Shrinivas Rao, CEO – Asia Pacific, Vestian Global Workplace Solutions, says, “The ORR (Sarjapur-Marathahalli-Hebbal belt) is the most promising organised retail destination with immense potential for development. This is the largest IT/ITeS corridor, with substantial commercial and residential growth. With good connectivity, proximity to catchment areas and minimal retail options presently, there is a requirement for retail support. As for Bangalore north, Thanisandra Road and Bellary Road show potential with good retail prospects in the medium to long term as the IT as well as residential market matures. High streets New BEL Road and Kammanahalli Main Road are witnessing an average annual rental growth rate of 5-9 percent since 2009.”
Naveen Nandwani, Executive Director, Cushman & Wakefield, elaborates on these emerging retail hubs. “In the north, Thanisandra Road and Hebbal sub-markets are expected to emerge as new retail hubs. The lack of mall space in these locations and the expected influx of new mall supply are expected to propel retail activity. As for high streets, New BEL Road is already a retail hub and going forward, Sahakara Nagar, which has been witnessing traction, will gain momentum. Yelahanka is also expected to emerge as a new main street along with the expected mall influx in that sub-market, which boasts of a growing residential catchment.”
In the south, Electronics City and J P Nagar are expected to witness fresh mall supply and considering the ample residential property development in those locations, they are expected to develop into retail hubs in future. “Sarjapur Main Road and HSR Layout have been witnessing retail transactions and are commanding significant demand. Thus, these locations are expected to witness increased retail expansion and emerge with high streets in future. The east already has well-developed retail real estate. This region is expected to witness the influx of two more malls. In west Bangalore, the demand is stable but, the influx of a new mall in Vijayanagar may lead to increase in retail activity in this location,” Naveen adds.
Retail formats in emerging areas
According to Shrinivas Rao, large scale formats such as the ‘big box concept’ are being widely explored in the ORR belt. He explains, “Such megastores or superstores house diverse categories such as a hypermarket, white goods and electronics stores, home furnishings and apparel and footwear under one roof. The food and beverage (F&B) category is doing well in high streets in the north, and the ORR. A well-travelled IT crowd, proximity to the airport, better connectivity to industrial areas and the planned Bangalore-Mumbai Industrial Corridor has led to several star hotels setting up base in the northern quadrant.”
Research by Cushman & Wakefield indicates that in the north, Thanisandra Road, Yelahanka, Tumkur Road and Hebbal are expected to witness mall developments. In the south, malls are expected to come up in Electronics City and J P Nagar, and in the west, Vijayanagar is expected to witness fresh mall supply.
High streets are expected to emerge in Yelahanka and Sahakara Nagar in the north and HSR Layout and Sarjapur Road in south Bangalore. Free-standing vanilla stores are emerging on these high streets. In Yelahanka, the high street is expected to come up in the proximity of an upcoming mall.
Naveen explains, “The upcoming malls are witnessing demand from a mix of brands. However, certain main streets are witnessing comparatively greater demand from certain categories of retailers. Sahakara Nagar is witnessing greater demand from apparels, and food and beverages brands. In HSR Layout, apparel and electronics retailers are more active. In Sarjapur Road greater traction is being witnessed from food and beverages brands, salons and other service industry retailers.”