Retail space for luxury brands to double in three-four years, says CBRE

Supply of retail space for luxury brands is expected to double in the next three to four years, according to property consultant CBRE. This is good news for a host of luxury brands present in India and eyeing an entry into the country. Companies including DLF, Reliance Industries, Phoenix Mills, Mumbai-based Maker Group and Shobha Developers have a lined up a host of projects both malls and other commercial buildings in cities like Delhi, Mumbai, Chennai and Bangalore. These are expected to take off soon, creating additional supply for retailers.

As per Vivek Kaul, Head Retail at CBRE South Asia, existing stock of luxury retail space in the country is approximately a million sq. ft. while around two million sq. ft. is expected to be built up in the next three-four years.

CBRE pegged the existing stock of organized shopping centre space in the country at approximately 57 million sq. ft.; while there are expectations of an additional supply of more than 16 million sq. ft., luxury is expected to get a fair share of it. With additional space, the shortage of adequate retail area and high rentals (that falls in the range of 500-1,200 per sq. ft. per month on carpet area is expected to ease to certain extent.