Knight Frank India Report on Transit Retail

by Priya Jadhav
Retail opportunity on highways in India estimated to be USD 4.2billion by 2030; to be dominated by F&B: Knight Frank India
Lease rental revenue opportunity for operators in highway retail expected to be USD 0.5 billion by 2030
Bus Station retail opportunity estimated to be at USD 0.9 billion by 2030: Knight Frank Report
Lease rental revenue opportunity for operators in bus station retail is expected to reach USD 0.1 billion by 2030 
Mumbai, February , 2020:Knight Frank India, a leading international property consultancy, in its latest study, ‘CATCH THEM MOVING’ a report on Transit Retail, estimates that the food and beverages (F&B) retail opportunity for highway retail in India to be USD 4.2 billion by 2030 from the estimated market size of USD 0.1 billion in 2019. This is expected to translate into operator opportunity (in the form of lease rental) for modern retail on highways of USD 0.5 billion by 2030. In the same period, bus station is expected to be USD 0.9 billion with an estimated lease rental opportunity of USD 0.1 billion.
Two factors that will significantly drive this number are the pace at which bus infrastructure in the country is revamped and the amount of business potential that operators and retailers see at bus stations in India.
Mr. Shishir Baijal, Chairman and Managing Director, Knight Frank India, said “As more and more expressways and highways get constructed/developed, more people will make increasing use of them and accordingly the modern retail opportunity on highways in India will grow exponentially. An institutionalized framework set by government policy is essential to monetise the highway retail opportunity in India. Importantly, the business potential of highway retail cannot only set off government’s expenditure on roads, but also help fund future projects. Bus station retail is also a significant opportunity in terms of transit retail in the country and the role of infrastructure redevelopment is critical in that regard.”
Roads & Bus Stations Transit Retail Snapshot:
Parameters
Period
Roads
Bus Station
Existing passenger traffic (Million, annual)
2019
190*
29,561
Retail market
   
Estimated market size
(USD billion, annual)
2019
0.1
0.01
Projected retail opportunity
(USD billion, annual)
2030
4.2
0.9
Private operator market opportunity
   
Projected operator (lease rent) opportunity
(USD billion, annual)
2030
0.5
0.1

Source: Knight Frank Research

* Growth in annual passenger traffic | Note: Retail refers to Modern RetailSource: Knight Frank Research
Currently, large scale infrastructural development of bus stations is underway across the country.
Key highlights from Highway Retail:
·  With its heavy traffic, the Mumbai-Pune Expressway is one of the most lucrative organised, highway retail stories in the country.
· National Highway - 44, Delhi to Zirakpur stretchhas shopping destinations with a range of global bridge-to-luxury brands, international sportswear outlets and other renowned apparel and cosmetic brands.
· The government has announced the Highway Amenities Scheme (HAS) with plans to build 150 mega highway villages across the country with myriad facilities ranging from motels and food courts to trucker dormitories and dhabas
Key Highlights from Bus Stations Retail:
·  Bus station retail is at a very nascent stage in India.
·  The mixed - use development at bus stations in India is more probable in the near future.
·  The newly built Rajkot Bus Terminal in Rajkot, Gujarat and the upcoming Vashi Bus Depot in Vashi, Navi Mumbai are examples of bus station mixed-use development models.
·  The Alambagh Bus Terminal in Lucknow, UP presents a case for monetisation of bus station-adjacent land parcels. Spread across an area of 37 acres, the Chennai Mofussil bus stand is the largest in the country.

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