India is home to the world's largest young population. This means the potential of high-demand generation, especially in the retail sector. The Indian retail sector is already one of the largest in the world, estimated at almost US$ 900 billion in 2020, and is expected to grow to USD 1.7 trillion by 2026.
According to a new report by ANAROCK Retail, between April 2020 and May 2021, some of the leading retail brands closed over 120 lease deals at prominent high street markets across Indian cities and towns. The deal sizes ranged for areas as low as 400 sq. ft. and went all the way up to 35,000 sq. ft, the report states. Of the categories that closed high street leases, apparel had the largest share of deals with an over 23% share, followed by F&B with a 15% share, and jewellery with 12%. Hypermarkets and supermarkets mostly leased large high street spaces in smaller towns and cities. The prominent tier II and III cities include Chandigarh, Lucknow, Ahmedabad and smaller towns in Uttar Pradesh and Madhya Pradesh.
Tier II & III Cities are expected to drive the next wave of retail growth and have received five times more investments in retail infrastructure compared with metros and tier-1 cities in the last decade. Located on the route that connects Chandigarh to Delhi and other regions of Punjab, Zirakpur consequently benefits from the trade and interactions that occur along this economic corridor. The city is an outstanding example of Chandigarh peripheral's growing space. With the addition of private developers, the city became a valuable centre for real estate investors and end-users alike.
The town has become a focal point for a number of high-profile residential and commercial developments. Zirakpur has one of the most developing economies right now. The city's steady growth has progressively drawn a large number of individuals to dwell in the area. In Zirakpur, Starbucks has opened its first and only drive through outlet in India. Popular brands like Arrow, Louis Philippe, Van Heusen, PE, Nike, Adidas have opened multiple stores in and around Zirakpur in recent years, highlighting the town's importance, particularly among shoppers. Apart from that, numerous popular cafes and eateries like Mcdonalds, KFC, Burger King and many more have opened in the town, providing residents with diverse options.
The growing popularity is collaborated by the presence of retail giants such as Walmart, Max Wholesale, Best Price to name a few. The retail chain D'Mart, has opened 3 outlets in Zirakpur. The presence of these giants attest to the fact that tier-II cities and small towns are offering Indian retail the biggest opportunity for retailers. Since logistics costs are lesser in cities near Chandigarh, especially Zirakpur, these businesses can turn profitable much faster in this city.
Sushma Group, the top developer in the Chandigarh Tricity & Zirakpur region, is offering leased spaces in its commercial projects where it has entered into tie-ups with global brands like Nike, Subway, Pizza Hut, Crocs and many more. This in turn has motivated investors into buying units that are occupied by these leading global brands so that they start reaping the fruits of rental income from day one. As global brands are already operating in the project, it promises great footfalls and make the commercial project an ideal destination as a leisure avenue for the shoppers.
The availability of housing and commercial premises close to the restrictive Chandigarh prompted the creation of a script for urbanization in Zirakpur. Recently, the city has begun to develop its personality, which is encouraging to new enterprises and institutions for setting up shop in Zirakpur. The town is extremely well connected, whether to neighboring cities or important transit hubs; it includes a significant chunk of the Chandigarh International Airport Hub. Connectivity gives the town a competitive advantage in terms of being the preferred investment center.
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( With inputs from ANI )
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