Leading international real estate consultancy Jones Lang LaSalle India has released its latest research report 'Retail Realty In India – Evolution & Potential'. The report compares the real estate viability of key emerging retail markets across Asia.
On the basis of strong signals indicating that Emerging Asia is poised to become the engine of future economic growth, the report examines the diversity of different Asian cities and the retail opportunities they offer. With established markets such as Shanghai, Singapore, Hong Kong and Beijing already having seen high retail growth rates, newer markets are now emerging in strength.
"'Retail Realty In India – Evolution & Potential' offers a comparison of the retail markets of the top sixteen cities in the Emerging Asian countries," says Shubhranshu Pani, Managing Director - Retail Services, Jones Lang LaSalle India. "An analytical juxtaposition shows that each city has distinct and variegated socio-economic, demographic and infrastructural factors driving the growth of their retail real estate markets. India, a country where each city presents its own subtleties and market behaviours, is a good case in point."
While leading cities of Mumbai, Delhi and Bangalore have the highest level of market potential and retail maturity; rising income, consumption and infrastructure scenario in other cities make them high potential markets for retailers and developers in future.
Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India says, "Different Asian countries are at different stages of development of infrastructure, logistics capability and general real estate market development. Retailers are prevailed upon to tailor their local market strategies according to factors such as real estate locations, price points and available logistics. Such issues do not, as a rule, exist in developed world."
The characteristics of Asian consumers that make them different from consumers in developed markets are also noteworthy. Most Asian populations are witnessing rising incomes. This makes them prone to higher spending impulses than consumers in the West, who are currently in belt-tightening mode.
"Also, consumers in India, China and other emerging nations are curious and want to explore new brands," says Puri. "Consumption of high-value items and luxury products is rising. Simultaneously, the Asian consumer at all times keeps an eye on the affordability of products."
'Retail Realty In India – Evolution & Potential' asserts that the seven leading cities of India - Delhi, Mumbai, Bangalore, Chennai, Pune, Hyderabad and Kolkata - are on par with some of the leading emerging retail markets in China, Bangkok, Manila, Jakarta and Hanoi and goes on to provide data-driven comparisons.