Retail market size to reach US$ 2 trn by 2032: Report

About 25 million square feet of new mall space across seven major cities are to be added by real estate developers over the next 4-5 years

February 23, 2023

Sales value during the festive season in late 2022 was 2.5 times higher compared to the previous year

The organised retail sector is expected to grow at a Compound Annual Growth Rate (CAGR) of 25%

The Indian retail sector as a whole attracted around US$ 1,473 million between 2019 and 2022

The top cities have over 51 million sq ft of mall stock across India

India’s retail market size is expected to reach US$ 2 trillion by 2032, compared to US$ 690 billion in 2021, according to a joint report by Anarock and the Retailers Association of India (RAI).

According to the report, nearly 25 million square feet of new mall space across seven major cities are to be added by real estate developers over the next 4-5 years. Last year, these seven cities added over 2.6 million sq ft of mall space, up by 27% from 2021.

Experts said that the estimated sales value during the festive season in late 2022 was 2.5 times higher compared to the previous year, standing at INR 2.5 trillion. They further mentioned that the organised retail sector is expected to grow  25%, and the Indian retail sector as a whole attracted around US$ 1,473 million between 2019 and 2022. Additionally, the sales volume of the organised retail segment in FY22 was estimated at US$ 52 billion and is projected to reach US$ 136 billion by 2028 with a growth rate of 17%, the report said.

As per the report, the top cities have over 51 million sq ft of mall stock across India, and over 62% of that space is accounted for the National Capital Region (NCR), Mumbai Metropolitan Region (MMR) and Bengaluru.  Last year, average rentals in malls appreciated by nearly 15% over 2021, with Bengaluru registering the highest increase in rentals by 27%, followed by Kolkata at 20% in 2022 compared to the previous year.

Regarding industry estimates, the report mentioned that over the next five years, the e-retail market is expected to reach US$ 120-140 billion by FY26 increasing at 25-30% annually.

Source: Business Standard

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