Despite robust growth in recent years, India’s retail real estate industry encounters several challenges:

• High Development Costs: Land prices in prime urban areas are prohibitive, affecting project viability. Developers also face steep financing and construction expenses.
• Regulatory Hurdles: Although reforms like RERA have increased transparency, projects still face bureaucratic delays and complex approval processes in certain states.
• Infrastructure Deficits: Inadequate public transport, parking facilities, and road connectivity limit footfall in tier-2 and tier-3 cities.
• Competition from E-commerce: Online shopping challenges brick-and-mortar outlets lacking engaging in-store experiences or tech integration.
• Vacancy & Poor Planning: Strata-sold malls or poorly managed properties often suffer from high vacancy rates due to inefficient design or lack of anchor tenants.

To overcome these hurdles, developers must innovate with omnichannel strategies, mixed-use formats, and experience-driven designs while collaborating with government agencies to streamline infrastructure enhancements.