Mumbai: Global real estate consultants, Cushman & Wakefield has estimated that the share of luxury retail space in India will be a modest 1.44% by 2015 as against the current 1% even as total retail malls stock is set to increase by 27% by 2015.
The report released on Thursday highlights the changing luxury retail scenario in India. It said that of the total current operational mall space in the organized retail sector across the top seven cities of India is estimated at 66 million sq. ft. of which luxury retail space is only 770,000 sq. ft.
The relative reach of luxury brands present in the malls of top seven cities in India is the highest in NCR at 38%, followed by 21% in Mumbai and 17% in Bengaluru.
"NCR and Mumbai have been favoured destinations for luxury retailers as they have marked the evolution of mall culture in the country. However, lately luxury retailers have started focusing on Bengaluru as the next upcoming destination with its development as an IT Hub and higher disposable income," it said.
Meanwhile, cities like Pune, Chennai and Hyderabad are yet to gain traction from luxury retailers in malls as they have relatively low luxury brand reach and are yet to catch up with the mall culture to the extent witnessed in NCR, Mumbai and Bengaluru. A similar trend was observed while analyzing penetration of luxury retailers in each of these cities.
On the other hand, the reach of luxury brands in the prominent main streets of the top seven cities in the country was led by Mumbai and NCR each having 30% reach, followed by Hyderabad with 16% reach. Hyderabad emerged as an exception in wake of low vacancy and limited mall supply in the city, thus resulting in increased presence of luxury retailers on its main street.
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