North India Leads Retail Growth in Tier II and III Cities
North India is set to dominate the retail supply in Tier II and Tier III cities, according to a report by JLL. The northern region will account for 44% of the total retail supply expected in the next five years. This growth is driven by increasing consumer demand, available land, and a previous lack of quality retail spaces.
Key Cities and Developers
Ludhiana, Jaipur, and Lucknow are the main cities contributing to this expansion. A mix of established and emerging developers are meeting the needs of these urban centers. The upcoming malls will have an average gross leasable area of 375,000 sq ft, with some projects reaching 1 million sq ft.
Retailer and Investor Confidence
Retailer confidence is growing due to high-quality supply from established developers. Premium brands are entering these markets, driven by rising consumer aspirations. Leading developers have acquired land in cities like Jaipur, Lucknow, and Mohali for retail projects.
Institutional investors are also focusing on these cities, with a significant portion of assets now located in emerging urban centers. This has increased retailer confidence, supported by the availability of premium-grade malls.
Doubts Revealed
North India -: North India is a region in the northern part of India, which includes states like Punjab, Haryana, Uttar Pradesh, and Rajasthan. It is known for its rich culture and history.
Retail Growth -: Retail growth refers to the increase in the number of shops and stores, and the expansion of existing ones, where people can buy goods and services.
Tier II and III Cities -: Tier II and III cities are smaller cities in India compared to big cities like Delhi or Mumbai. They are growing and becoming more important for businesses.
Retail Supply -: Retail supply means the availability of spaces like shops and malls where businesses can sell their products to customers.
Ludhiana, Jaipur, Lucknow -: Ludhiana is a city in Punjab, Jaipur is the capital of Rajasthan, and Lucknow is the capital of Uttar Pradesh. These cities are important for business and culture in North India.
Developers -: Developers are companies or people who build and create new buildings, like malls and shops, for businesses to use.
Leasable Areas -: Leasable areas are spaces in buildings that can be rented out to businesses, like shops in a mall.
1 million sq ft -: 1 million square feet is a measure of area. It is a very large space, about the size of 18 football fields put together.
Retailer Confidence -: Retailer confidence means that shop owners and businesses feel positive and hopeful about opening and running their stores in a certain area.
Premium Brands -: Premium brands are high-quality and often expensive brands that people trust and like to buy from, like Nike or Apple.
Institutional Investors -: Institutional investors are big organizations, like banks or investment companies, that invest a lot of money in businesses and projects to earn profits.
