MUMBAI: Mumbai, NCR Delhi, Chennai, Kolkata, Bangalore, Pune and Hyderabad are the leading cities for retail and real estate operations in India as they account for over 70% of the country's total retail stock.
While NCR Delhi has a large retai stock that is comparable with leading Chinese and emerging ASEAN cities, stock in Mumbai is largely comparable with the Tier III cities of Changsha and Hefei in China. These are the findings of a research report, " Retail Realty in India-Evolution & Potential" released by global real estate consultancy Jones Lang LaSalle India on Sunday.
Although the gap between the retail stock of NCR Delhi and Mumbai seems high given the small income gap, Mumbai recently witnessed major improvements in infrastructure, which could help the city to spread its retail penetration further, said the report.
Tier I cities in Emerging Asia, except for Bangalore and Chennai, have retail stock of 20 million sq ft or above. Chinese Tier II cities of Shenyang and Chengdu have more retail stock than the comparable cities in the study. Shenyang, the largest city in northern China, has an established retail market and a robust industrial base.
"Additionally, the city acts like a transportation hub with direct connectivity to Beijing, Dalian and a few other established and emerging markets. This helps retailers to not only make Shenyang a destination for front-end sales, but also strengthen back-end logistics. Chengdu has a larger population and is home to a large concentration of high-net-worth individuals," said the report.