E-Paper
Transit retail opportunities expected to grow to $21.6billion by 2030: Report
The growth is attributable to get a boost from a “healthy” development in passenger traffic as well as transport infrastructure in the country.
Retail opportunities at transport hubs in India such as airports, railways, metro, highways, bus stations are expected to grow to $21.6 billion by 2030, according to a latest study.
The growth is attributable to get a boost from a “healthy” development in passenger traffic as well as transport infrastructure in the country.
The study by property consultant Knight Frank estimates that the current size of Transit Retail in India at $2.2 billion.
“The government’s focus on developing and modernising the transport modes including airports, railway stations, metro and highways is opening up unprecedented opportunities for the organised retail segment,” Shishir Baijal, chairman and managing director of Knight Frank, India, said.
He said the development of retail infrastructure at key transportation nodeshas offered opportunities to monetise the potential of guaranteed footfalls with wait time.
The report said that though the retailing potential is best tapped at airports, it is still at a nascent stage for metros, railways, highways and bus stations. A major part of the retail opportunity at transit hubs is presently untapped due to the shortage of retail infrastructure.
The survey said that the large retail potential translates into lease rental opportunity of $1 billion at present and is estimated to grow to $2.3 billion by 2030.
“The government can potentially monetise these transit-oriented retail assets to generate $10 billion funding,” the survey said.
Baijal said the retail real estate growth in India has so far been the most sensitive to domestic and global conditions.
Most of the organised retail growth in the country till date has been based out of mall developments with sales largely dependent on footfalls, followed by conversions, he said.
The report said that the total retail opportunity for airport is expected to grow to $9.3 billion in the next decade from $1.4 billion in 2019.
As for the metro and railway stations, total retail opportunity is projected to grow to $5.6 billion and $1.9 billion by 2030 from $0.6 billion and $0.1 billion in 2019.
