A Wealth Of Opportunity Beckons International Retail Players
International property consultancy Jones Lang LaSalle has released its latest retail research report 'Refreshingly Sri Lanka – An Island of Retail Opportunity'. The report highlights Sri Lanka's hottest potential retail hotspots and sharp-focuses on Colombo, which is the gateway for international tourists and a prime business destination. The report describes how the retail market in Colombo is growing rapidly and stronger than in any other market in Sri Lanka.
Gagan Singh, CEO - Business (India) & Chairperson - Sri Lanka Operations, Jones Lang LaSalle says, "Analysing the retail scenario in Colombo based on various factors such as individual household expenditure, tourist’s expenditure and along with the existing mall stock and future malls supply, we found Colombo’s retail real estate is not growing as quick as the retail sector in the city. Based on our study, the total mall space required in Colombo is around 2.4 million sq. ft. while the actual mall stock available today is about 0.7 million sq. ft.
With a weak mall supply for the next five years the shortage of mall space in Colombo will continue to remain at around 70% until 2017.
"The size of the Sri Lankan retail market is estimated at between USD 25 billion and USD 30 billion, out of which organised players represent only 3%, " says Gagan Singh. "This offers growth opportunities for both global and domestic retailers in Sri Lanka."
Political and economic stability and major internationally funded infrastructural development have made Sri Lanka one of the most promising new real estate markets in the Asia Pacific region. Retail, in particular, is riding high on its impressive economic growth, which has increased the country’s per capita income from USD 2,014 in 2008 to USD 2,923 in 2012.
Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India says, "The rising living standards of Sri Lankans are changing their spending patterns and preferences towards more quality branded goods and services. Colombo has witnessed the greats development of organised retail establishments in its up-market locations. Given the current trend in organised retail and brand presence, there is significant scope for enhancing targeted retail capacity in upcoming residential locations."
Sri Lanka has several potential retail hotspots, such as Colombo, Gampaha, Kandy, Kalutara, Galle, Kurunegala and Matara. Colombo reigns supreme in the country's overall retail potential - however, the lack of mall space and quality high street properties - hinders the expansion of both international and domestic retailers. Given the lack of supply of quality retail space along with good demand from retailers, rents are being pushed upwards.
Sri Lanka's local retail players have already built world-class supermarkets, apparel brands and electronics showrooms- and it is far from enough to meet the overall demand. 'Refreshingly Sri Lanka – An Island of Retail Opportunity' brings forth the compelling wealth of opportunity that awaits retailers, mall developers and investors from across the globe in Sri Lanka.
For Media Contact..
Mr. Arun Chitnis
Head – Corporate Communications & Media Relations
Jones Lang LaSalle India
Level 6, Amar Avinash Corporate Plaza
Bund Garden Road,
Pune 411001.
Tel: (020) 30930441 Fax: (020) 40196101
Mob: +91 9657129999
Bund Garden Road,
Pune 411001.
Tel: (020) 30930441 Fax: (020) 40196101
Mob: +91 9657129999
Website: www.joneslanglasalle.co.in
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