The size of the country's retail market is expected to touch USD 2 trillion by 2032, growing from USD 690 billion in 2021, according to a joint report by Anarock and Retailers Association of India (RAI).
The report by property consultant Anarock and RAI said that real estate developers plan to add nearly 25 million square feet of new mall space across seven major cities over the next 4-5 years.
In 2022, these seven cities added over 2.6 million sq ft of mall space, up 27 per cent from the preceding year.
"The festive season, devoid of restrictions and any fear of the contagion, was exemplary with record high volumes and sales value," Anuj Kejriwal, CEO & Managing Director - ANAROCK Retail, said.
Sales value estimated during the festive season in late 2022 was Rs 2.5 lakh crore, nearly 2.5 times compared to the previous year, he said.
"Further, the retail market size is expected to touch USD 2 trillion by 2032, growing from USD 690 billion in 2021, facilitating the organised retail sector to grow at 25 per cent CAGR," Kejriwal said.
Kumar Rajagopalan, CEO of RAI, said the Indian retail sector attracted around USD 1,473 million between 2019 and 2022.
Presently, the top cities have over 51 million sq ft of mall stock across the country with NCR (National Capital Region), MMR (Mumbai Metropolitan Region) and Bengaluru accounting for 62 per cent of the total stock.
The average rentals in malls appreciated by nearly 15 per cent in 2022 over the previous year. Bengaluru registered the highest uptick in rentals of around 27 per cent, followed by Kolkata at 20 per cent in 2022 over the previous year.
Citing industry estimates, the report said that e-retail market is anticipated to reach USD 120-140 billion by FY26, increasing at 25-30 per cent annually over the next five years.
The sales volume of the organised retail segment in FY22 was estimated at USD 52 billion and is projected to grow to USD 136 billion by 2028 with a CAGR of 17 per cent, it added.