Gurgaon Creating Retail Magic

Gurgaon which has earned the sobriquet of ‘Mall Capital of India’, is making waves with malls, high streets and mixed-use commercial developments and over the next 5 years, 4.7 million sq ft of space is set to enter Gurgaon’s retail market.

According to a recent research report by 360 Realtors, around 53.2% of the new space will be concentrated on the Golf Course Extension Road, especially in Sec 65 and 66. Besides, there is a growing spotlight on the Dwarka Expressway and New Gurgaon region as well, as per the report. The new retail space will comprise traditional mall-style development alongside new-age mixed real estate, SCOs, etc.

Gurgaon is one of the fastest-growing retail markets in India backed by an expansive commercial sector, proliferating residential neighborhoods, and growth in malls & high street culture. It is also called the mall capital of India with close to 90 operational malls. No other city in India comes close. In the past 10 years, around 47 new malls have entered Gurgaon. The city also has around 100+ supermarkets and hypermarkets and around 5000 F&B units, which include numerous gastropubs, fine dining restaurants, cafes, etc.

According to Ankit Kansal, MD, 360 Realtors, the footfall has now crossed the pre-pandemic levels, with a buying spree visible in malls and high streets of Gurgaon. “Mall operators and retailers are also keeping track of the pulse of the market and accordingly strengthening the supply side. There is a growing pivot to new-age concept retail with an increased focus on driving engagement, offering more entertainment, and investing heavily in decors and aesthetics. From adopting more sustainable practices to creating green zones to designing instagramable spaces, retail development  The role of malls and shopping centers will go beyond just transactions in the coming times. Mall operators will have to think clearly on the lines of adding more value to the visitors.”

The report also highlighted the rise of SCO spaces in Gurgaon. Presently there are a total of 75.5 acres of SCOs under development in Gurgaon, growing at a CAGR of 32%. Plenty of SCOs and new-age mixed realty projects are underway in the Golf Course Road (GCR) and the New Gurugram region. While traditional regions of MG Road and GCR are reaching saturation, there is an increased spotlight on new emerging corridors of Extension Roads and the New Gurgaon area. Leasing rates in GCR are around INR 180- 250/ sq ft. Meanwhile, rates are much more affordable on the Extension Road- around INR 65-120/ sq ft.

The New Gurgaon region which emanates from the terminal point of the Extension Road and stretches till Sector 95, is also emerging as an affordable yet very vibrant retail market. There are plenty of great opportunities available in the region including The Mark, Metro Street, Gallexie-91, etc.“The leasing rates are presently in the range of around INR 55- 90/ sq ft in New Gurgaon. However, it will soon sharply rise, as the demand is picking-up.” says Kansal.