Cities like Ahmedabad, Chandigarh, Surat, Amritsar, Vadodara, Nagpur, Coimbatore, Lucknow, Jaipur, Ludhiana, Kanpur and Raipur are emerging as high potential markets for retail development.
"High immigration, excellent infrastructure, increasing per capita income and propensity to consume are key drivers for high market potential in the Tier III cities. Besides, growing office market is another important factor for retail development in such markets," the report said.
According to JLL, while Ahmedabad, Chandigarh and Surat have already emerged as high potential markets, cities such as Kanpur and Raipur are slowly moving up in their market potential and retail maturity index.
Cities like Mumbai and Delhi have witnessed an influx of big-box, fast-fashion and high-end retailers, it said.
Other leading cities such as Bangalore, Pune and Chennai have seen reasonably good absorption of retail spaces on the back of high consumerism supported by strengthening IT-ITeS sector and the strong auto, manufacturing and biotech sectors.