Faridabad’s Retail Scene Booms as City Emerges a Major Investment Destination

By Romi Garg, Director, Pebble Downtown Mall 

Faridabad/  September 23, 2024:

Indian retail in the last few years has seen an overwhelming shift from the traditional metropolitan hubs towards the rising tier-2 cities. Among these hotspots, Faridabad is one of the most rapidly evolving retail investment destinations in the country. The city presents good infrastructural development along with an increase in footfall of consumers in the strategic location, which makes it an attractive destination for national and international retail brands.

As Tier 1 continues to have large retail giants, the competition has been getting stiffer, real estate costs are high, and market saturation is at its peak; this has prompted developers and retailers to reach Tier 2 cities. Tier 2 cities provide untapped potential and allow brands to tap a new demographic market, with significantly lower costs of operations.

It is located close to the National Capital Region and thus highly connected through highways and even metro links, which makes it a prime destination for retail expansion. Residential growth, rising disposable income, and shifts in lifestyle among its population make for a very prominent location for retail investments.

Advertisement

According to the Kearney Index, the top 20 cities in India are listed in terms of retail parameters. In 2023, Faridabad ranked 13th, which was better than the year 2021. This progress shows the city’s retail potential, strengthens retail opportunities in the city and improves the business environment and job opportunities. Faridabad has become an attractive city for retail developments, which has led to a booming phase of the city.

The last decade has witnessed fast-paced urbanization in Faridabad. Developments such as modern residential complexes and new industrial hubs set up with a sound public transport network have made it an attractive city for residents and businesses alike. Malls, developed to meet the growing needs of retail and entertainment spaces, catered to shoppers in a city and its neighborhood areas. 

Improvements in road connectivity, such as the Delhi-Faridabad Skyway, have also added new attractions to Faridabad’s appeal as a retail destination. One of the stronger drivers of retail growth in the Tier-2 cities is the growth of the middle-class consumer. 

Together with increasing incomes and changing lifestyle preferences, the demand for Faridabad’s population to seek more branded products indicates the increase in retail demand. This is mainly due to the fact that consumers’ expectations are increasing, and with that, the calls for new retail experiences are being enhanced, which in turn pushes brands into coming into the city.

Faridabad would be one of the major transit nodes, greatly improving regional connectivity and thus lowering the travel time. DND Mumbai industrial corridor would improve connectivity from Faridabad to South Delhi/Noida hence a nearer locality from posh South Delhi compared to other cities. Additionally, the upcoming Jewar Airport is set to significantly increase the number of businesses, with projections indicating a traffic increase five times greater than that of IGI Airport.

Advertisement

The entry of international brands to Faridabad depicts an altogether different scenario compared with a few years back when residents would have had to travel all the way to Noida or Gurugram to buy from luxury brands. Today, Faridabad is therefore establishing a unique identity through its ambience, coming of international brands and cities individualistic features.

Faridabad offers retail spaces at relatively lower prices compared to the high prices in Delhi or Gurgaon. This makes it a cost-effective option for big-scale retailers as well as smaller businesses. Lower operating and rental costs make way for brands to pass on benefits to consumers, thus having healthy competition.

The Haryana government has come up with policies for the development of retail and commercial activities in cities like Faridabad. Some of these have included easing regulations, making approval procedures easier, and facilitating incentives to businesses that set up operations. Such initiatives have encouraged not just real estate developers but also retail investors to set up their flagship projects in the city.

Faridabad’s retail landscape is going to shift towards more global and homegrown brands. Starting from fashion and electronics, from home decor to FMCG, the city will be a major retail hub . The malls and shopping centers would further enhance retail trends with entertainment zones, food courts, cinemas and gaming spaces in order to attract customers.

As the city continues to expand and become even more urbanized, this potential will increase as a retail investment hotspot in Faridabad. In addition, connectivity between Delhi and Gurgaon through the Metro and major highways is attracting more developers, brands, and investors in the city. 

Advertisement

Furthermore, an increasing demand for warehousing and fulfillment centers because of e-commerce has made Faridabad a key node in the retail supply chain. It is a promising opportunity for retailers to; as the Tier-2 cities like Faridabad continually undergo urban growth and infrastructural development, their importance in India’s retail landscape will only deepen.