North India Leads Surge in Tier II and III Retail Expansion

A JLL report reveals that North India will constitute 44% of upcoming retail supply in Tier II and III cities over the next five years. The growth, spurred by high consumer demand and new development opportunities, sees cities like Ludhiana, Jaipur, and Lucknow spearheading the transformation.

The northern region of India is poised to receive a significant share of the upcoming retail supply in Tier II and III cities, according to a report by JLL. The report highlights that this part of the country will account for 44% of the total retail growth expected in these cities over the next five years.

The surge in new retail supply, amounting to 25 million sq. ft, is propelled by increasing consumer demand, land availability, and a previous scarcity of quality retail developments in these areas. Key cities like Ludhiana, Jaipur, and Lucknow are leading this expansion, driven by both established and emerging regional developers.

Developers are capitalizing on these opportunities to meet evolving market needs, with new mall projects expected to have an average gross leasable area of around 375,000 sq ft. Notably, four large-scale developments will each cover 1 million sq ft. Retailer confidence is strengthening in these markets, fostering store openings by premium and bridge-to-luxury brands.

(With inputs from agencies.)