Inorbit Malls Acquires 6.5 Lakh Sq. Ft. Retail Property in Hubballi
In a significant development for India’s Tier II cities, Inorbit Malls, a subsidiary of K Raheja Corp, has acquired a substantial 6.5 lakh square feet retail property, Akshay Sky Mall, in Karnataka’s Hubballi-Dharwad region. This acquisition marks a critical step forward in the retail real estate market for this developing city and was facilitated by JLL, a leading property consultancy.
Hubballi, the second-largest city in Karnataka, is known for its dynamic commercial environment. This acquisition reinforces the growing demand for high-quality retail spaces in Tier II cities across India, signaling the increasing attractiveness of these regions for large-scale investments and promising to reshape the local economy by creating a modern retail experience.
A Strategic Investment in a High-Potential Market
Often regarded as the commercial hub of North Karnataka, Hubballi has been gaining attention from both national and international businesses. The city’s catchment area, extending into Dharwad and surrounding regions, provides access to over 1.5 million people, with a daily floating population of more than 100,000. These demographics create an ideal environment for new retail ventures, making Hubballi an attractive destination for developers like Inorbit Malls.
The population is primarily young and aspirational, with over 50% aged between 15 and 45 years, representing a key consumer base for modern retail developments. The strategically located Akshay Sky Mall on Gokul Main Road ensures easy access for shoppers and is set to launch by the end of 2024.
A Boost for Hubballi-Dharwad's Economy
Hubballi, along with Dharwad, is part of the Hubballi-Dharwad Municipal Corporation and has been designated as one of the 100 smart cities under the Ministry of Urban Development's Smart Cities Mission. The city has experienced considerable growth in infrastructure and urban development, attracting more investors for future commercial projects.
The retail sector is increasingly spotlighted, as developers recognize the potential of expanding into Tier II markets. Retail space in these cities is becoming a significant asset class for investors seeking to tap into new consumer markets. Reports suggest that India will need an additional 55 million square feet of Grade-A mall space by 2027 to meet rising demand.
This acquisition comes at a time of heightened interest from domestic and international retail brands eager to explore untapped markets outside major metros. With increasing purchasing power and a shift toward organized retail, Akshay Sky Mall is poised to cater to Hubballi's rising middle class, who are seeking high-quality retail experiences.
Future Prospects for Retail in Tier II Cities
The acquisition of Akshay Sky Mall is expected to set a new standard for retail spaces in Hubballi, bringing in top brands and creating new opportunities for employment and commerce in the region. The presence of a large mall will not only enhance shopping options for residents but also position Hubballi as an emerging retail destination for nearby towns.
Tier II cities across India, including Hubballi, are poised to play a pivotal role in the future of the real estate sector. As developers increasingly shift focus from saturated metropolitan markets to these growing urban centers, investments like Inorbit Malls’ acquisition of Akshay Sky Mall will serve as benchmarks for future projects.
Such developments have the potential to transform the retail landscape of cities like Hubballi, leading to increased consumer footfall and boosting local businesses. The project is expected to enhance the local economy and set standards for similar investments in Tier II markets.
The acquisition of Akshay Sky Mall by Inorbit Malls signifies more than just a business transaction; it represents the evolution of India’s retail real estate landscape, with Tier II cities like Hubballi-Dharwad emerging as key players. As urbanization expands beyond metropolitan centers, real estate investments in these emerging markets are likely to drive the next wave of growth in retail. With a young, aspirational population and rising demand for organized retail spaces, the future looks promising for Hubballi-Dharwad and other similar cities across India.