This is one piece of news which will boost the sentiments of retail players looking to capitalise on Amdavadis love for shopping.
Contrary to traditional belief that organised retail has failed in Ahmedabad, Retail Attractive Index of real estate consulting firm, Jones Lang LaSalle has said that Ahmedabad has high unmet potential for organised retail.
The same index says that in Vadodara, relatively higher upcoming retain stock per capita is desirable taking into consideration higher per capita expenditure. As per the index, Ahmedabad offers affordable rents to the retailers and have sixth highest office stock per capita. Ahmedabad offers mall space at a rent of Rs50 to Rs100 per square feet on an average, depending on the location of the store.
"It is surprising that despite a high rating on consumerism and presence of Target Income Group (TIG) families, the per capita upcoming supply of retail space is lower than Jaipur, Surat and Vadodara reflecting the high unmet potential for organised retail," said the report.
In recent years, cities such as Ahmedabad, Jaipur, Ludhiana, Indore and Chandigarh have witnessed considerably rapid growth in retail development and lack of entertainment options has been one of the major reasons for success of the first malls in these cities.
Ahmedabad ranks the highest among tier III cities in terms of its market potential, but lags behind in terms of market maturity, says JLL. Young population and hordes of entrepreneurs and factory workers flocking the city are in favour of the organised retail in Surat, but negligible retail supply per capita coming up in the next two years may hinder the progress of retail segment here.
Similarly Vodadara, which has the highest expenditure per capita compared to its peer cities such as Surat, Nagpur, Lucknow, Jaipur among others, has low mall space per capita and relatively higher upcoming retail stock per capita is quite desirable, said the index.
