According to a joint report by Anarock and Retailers Association of India (RAI), the country’s retail market is expected to reach US $ 2 trillion by 2032, going from US $ 690 billion in 2021.
Real estate developers plan to add nearly 25 million sq ft of new mall space over the next 4-5 years across seven major cities, said the report. These same cities added over 2.6 million sq ft of mall space in 2022, an increase of 27 per cent from the previous year.
“The festive season, devoid of restrictions and any fear of the contagion, was exemplary with record high volumes and sales value,” said Anuj Kejriwal, CEO & Managing Director, Anarock Retail.
He also added that the estimated sales value during the festive season in 2022 was Rs 2.5 lakh crore, which was around 2.5 times higher than the previous year.
“Further, the retail market size is expected to touch US $ 2 trillion by 2032, growing from US $ 690 billion in 2021, facilitating the organised retail sector to grow at 25 per cent CAGR,” Kejriwal said.
The Indian retail sector, between 2019 and 2022, attracted around US $ 1,473 million, said Kumar Rajagopalan, CEO of RAI.
At present, over 51 million sq ft of mall stock is available across the country and present in the top cities. Among this, NCR (National Capital Region), MMR (Mumbai Metropolitan Region) and Bengaluru account for 62 per cent of the total stock.
The highest uptick in average rentals in malls was in Bengaluru of around 27 per cent and Kolkata was a close second with 20 per cent over the previous year.
The report cited industry estimates and said that the e-retail market was estimated to increase by 25-30 per cent annually over the next five years and anticipated to reach US $ 120-140 billion by FY26.
It also added that the sales volume of the organised retail segment was projected to grow to US $ 136 billion by 2028, from $ US 52 billion in FY2022, and would also have a CAGR of 17 per cent.
