Tier 2 and 3 cities are experiencing a surge in new retail supply, with 25 million sq. ft of retail developments expected to come on stream in next five years on the back of growing consumer demand, availability of land and a lack of quality retail developments in these markets until a few years back, a report by JLL has shown. North India dominates the upcoming retail supply in Tier II and III cities, accounting for 44% of the total.
Ludhiana, Jaipur, and Lucknow are the key cities driving this growth. In this region, a diverse mix of established and emerging regional developers are driving supply. This is followed by Southern India with a share of 30% with cities such as Coimbatore, Mallapuram, Thrissur and Trivandrum leading the supply.
The eastern region will see a significant supply of 4.5 million sq ft, primarily led by Guwahati. In West India, major developers are coming up with large-scale, high-quality retail projects in cities such as Goa, Surat, and Ahmedabad, the report noted.
Premium and bridge-to-luxury brands venturing into Tier 2 and 3 cities Premium and bridge-to-luxury brands are also venturing into these cities, driven by rising consumer aspirations and new opportunities for store openings. Some of the retailers have also chosen these cities to open their first stores in the country such as Daiso Japan at Elante Mall in Chandigarh and Charles Tyrwhitt at Palladium Ahmedabad. Average gross leasable area of projects expected to be around 3.
75 lakh sq ft The u.
