Retail Spaces in demand!
Last couple of years saw the emergence of the virtual power of marketing and business. The consumers were caught in the magical web of discounts offered by online retailers. But, contrary to the feeling that this could pose a threat to the physical retail businesses, they have withstood this onslaught and are coming back stronger than before.
In fact, this competitive scenario has provided an impetus to the erstwhile retail market that largely comprised of scattered, independent shops. These are transforming into modern outlets replete with smart interiors, professional staff and facilities like air-conditioning under one roof! Apart from discounts that are offered online physical retail has the advantage of creating a real-time experience to attract the aspiring middle-class. They can enhance its quality by bringing in entertainment and other modern facilities that would pamper the consumer!
On this backdrop the Destination Retail 2016 report by top international property consultancy JLL, India provides important insights on the Indian positioning in retail sector. Pune, Mumbai, Delhi, Bangalore, Hyderabad and Chennai feature among the top 10 cities of India with highest retail sales growth forecast between 2015-2019. According to the report, the primary drivers for retail growth are in place in India. These include faster economic growth, rising prosperity and consumerism, supportive government policies and enhanced flow of capital to the retail real estate sector. The above factors are already attracting global brands to the country.
The Indian GDP which ranks seventh in the world and has seen the fastest economic growth of 7.6% in 2015-16. It is reported that the retail industry contributes between 14–to 20% of India's GDP and is one of the top five retail markets in the world by economic value.
Supportive Government policies and positive steps in form of new regulations like extended shopping hours, a better framework for establishing Real Estate Investment Trusts (REITs), moderate rules for foreign investors will further play a significant role in boosting the retail infrastructure development. Moreover implementation of the GST will also prove beneficial for retail sector with the burden of multiple taxes off their shoulders.
With the picture looking positive the most important part will be played by the retail real estate. Availability of good, quality spaces is the need of times. A good, prime accessible location, proper frontage, aesthetically designed functional spaces with state-of-the –art facilities are some of the basic things that are important from the retailers’ point of view. Pune is getting geared up to take on the challenge of providing world-class infrastructure for establishing the retail sector. With the Smart City projects underway along with other infrastructure development, the suburbs are developing in a much more planned manner than earlier. Hadapsar is one of these suburbs coming up as an ideal location for commercial property in east Pune for end users and investors. Presence of major IT companies and industrial estates and close proximity to Highway, airport and railway station make it an attractive prospect for retailers and developers.
One such upcoming project in Hadapsar is Runwal Regalia by the eminent Runwal Reallty Group steered by Pradeep Runwal, MD. It is a new-age shopping complex and lifestyle hub located on Pune-Solapur road, Hadapsar. It’s an exceptional commercial project offering two-sided frontage and comprises of shops, offices and showrooms that are perfect for a retail establishment!
With the retail scene looking promising, early investors will benefit the most in terms of pricing and location advantage! It will be an interesting scene to watch the growth of retail sector in its rejuvenated form!