The surge in office space demand will largely be influenced by foreign retailers eyeing an expansion of their stores in India.
Retail giants such as Starbucks are among the foreign retailers actively fueling this rising demand for office space across major Indian cities. As per market intelligence reports, the planned expansions by these international retailers are set to significantly influence the market, leading to increased absorption of office spaces.
Highlighted players such as Gron Stockholm, Hamleys, Hennes and Mauritz (H&M), Lacoste, and Starbucks are paving their way into the Indian commercial real estate sector. Their expansions are particularly poised to enhance office space absorption in key metropolitan areas.
Additionally, IKEA, the Swedish furniture powerhouse, is anticipating the Cabinet Committee on Economic Affairs (CCEA) to approve its substantial Rs.10,500 Cr investment plan, which would enable the company to further establish a presence across India.
Notably, American coffee titan Starbucks, in collaboration with Tata, has already opened outlets in Mumbai and Delhi. Similarly, other renowned foreign retailers like the British toy retailer Hamleys and European fashion chain Gron Stockholm have ventured into the Indian market, following partnerships with local brands.
Lacoste, the French fashion label, has made its entry as well, establishing stores together with Indian partners. H&M, the fashionable retailer from Sweden, is set to commence operations with its application currently awaiting approval.
In tandem with foreign expansion, Indian retailers such as the Aditya Birla Group, Bharti, Reliance, and Spencers are also gearing up for plans to amplify their retail footprint in 2013. This collective momentum will uplift the commercial real estate landscape, particularly in major urban areas.
Information indicates that a multitude of retailers, both Indian and international, have their eyes on expansion throughout this year, including Liberty Shoes, Malabar Gold, Peter England, and Proline, indicating a buoyant commercial market ahead.