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Skyzenith
- February 18, 2026
Location Strategy: How to Pick the Perfect Site for Your Retail or Corporate Expansion
The Geography of Success: Why Location Still Rules in 2026
In the dynamic landscape of Indian business expansion, few decisions carry as much weight or as much risk as the selection of a new site. With global institutional investors preparing to deploy significant capital into Indian real estate and a vast majority of global investors intending to increase direct commercial real estate investment, India has emerged as a defensive growth destination.
Rajesh Jain, MD & CEO of Lacoste India, learned this through experience. “I visited one city where a new mall was opening, but I rejected it because the catchment wasn’t right, and the brand adjacencies weren’t premium. Instead, I evaluated another mall on the other side of town,” he explains, emphasizing that choosing spaces capable of offering a complete customer experience determines success or failure.
Welcome to location strategy in the Indian market, where hypercompetition for quality sites has become the new normal, and the rules of engagement have fundamentally shifted. From Gurugram’s traffic-choked corridors to Bengaluru’s expanding northern frontier, from Hyderabad’s planned tech clusters to the rise of Tier-II cities as consumption hubs, the geography of Indian business is being redrawn.
The Great Indian Shift: From Metros to the Bharat Opportunity
India’s retail growth story is no longer confined to metropolitan centres. Tier-II and Tier-III cities are taking centre stage, driven by rising aspirations, digital adoption, and a young population eager for premium experiences.
Rahul Shanker, Group CEO of Quest Retail, warns against oversimplification: “There are all town classes Tier I to Tier III within even a 5 km radius in a large city. Retailers need to rethink segmentation and relevance in a more nuanced way.”
This granular understanding transforms site selection from a spreadsheet exercise into a strategic discipline. Sameer Manglani, Partner at Meena Bazaar, puts it succinctly: “Bhopal and Bhubaneswar might both be Tier-II, but their cultural preferences are different. You can’t copy-paste your Delhi strategy and expect success.”
For brands eyeing Indian expansion, e-commerce platforms and brand websites now provide pin code-level analytics, revealing which cities are already showing traction for specific products. This intelligence allows companies to enter markets where demand has already been validated digitally before committing to physical presence.
Where India Inc Wants to Be: The Corporate Corridors
India’s office market tells a compelling story. With record-breaking space absorption and significant year-on-year growth, the momentum shows no signs of slowing. Global Capability Centres have emerged as the primary drivers, accounting for millions of square feet across the country’s top six cities.
Bengaluru: The Maturing Tech Capital
Bengaluru’s growth has moved from Electronics City to Outer Ring Road, now home to Google, Amazon, and Microsoft. But success has brought challenges. Traffic congestion and strained infrastructure in eastern and southern parts are pushing companies northward toward Devanahalli and Hebbal, where Amazon and SAP have leased significant space. The city commands premium rentals in its prime micro-markets.
Hyderabad: The Planned Challenger
Hyderabad has emerged as Bengaluru’s strongest competitor. Backed by focused government initiatives, planned tech clusters like HITEC City, Gachibowli, and Nanakramguda house Google, Microsoft, Apple, and Meta within kilometres of each other. More affordable and better structured than other metros, Hyderabad offers competitive rental rates with strong infrastructure and business-friendly policies.
Gurugram: The Corporate Powerhouse
Gurugram’s Cyber City and Golf Course Road now host companies like Google, Microsoft, EY, and Deloitte. Proximity to Delhi Airport gives the city an edge for global BFSI and consulting firms. Traffic challenges are pushing development toward New Gurugram and the Dwarka Expressway, with prime locations commanding premium rentals.
The Rise of Tier-II Tech Hubs
Beyond traditional metros, cities like Indore, Udaipur, Bhubaneswar, and Jaipur are seeing impressive hiring growth. Infrastructure developments, multinational expansion, and high metro costs are pushing companies toward these locations, allowing cost optimization while aligning with evolving location strategies.
The Sohna Road Phenomenon
Few corridors illustrate India’s real estate dynamism better than Sohna Road in Gurugram. This 22-kilometre access-controlled corridor has emerged as one of the National Capital Region’s top-performing real estate destinations.
According to ANAROCK Research, property prices on Sohna Road jumped significantly between end-2021 and the second quarter of 2025. Average monthly rents for a standard 2BHK surged substantially, underscoring Sohna Road’s strong positioning as both residential and investment hotspot.
What drives this remarkable appreciation?
Connectivity: NH-48 links Sohna Road to Indira Gandhi International Airport, while upcoming infrastructure including a new metro line, planned flyovers, and the Delhi-Mumbai Expressway promises to enhance accessibility further.
Commercial Ecosystem: Key sectors along this belt include Sectors 47, 48, 49, 68, and 69. Popular retail hubs such as Aria Mall and Omaxe City Centre draw foot traffic, while Iris Tech Park and JMD Megapolis provide commercial infrastructure. Major corporations including Xerox, McKinsey, and NDTV Worldwide have established offices in the vicinity.
Neeraj K Mishra, Executive Director of Ganga Realty, explains the corridor’s unique appeal: “Sohna Road offers the rare balance of affordability and growth potential. This synergy of residential and commercial growth makes Sohna Road a self-sustaining real estate corridor for the future.”
Inside India’s Retail Destinations: The Mall Economy
Opening a store in a mall requires sophisticated analysis beyond simple footfall metrics.
Catchment Area Demographics
GeoIQ’s analysis comparing two malls in different Bangalore micro-markets reveals striking differences. While one location may have more households earning above certain income thresholds, its lower affluence score compared to another means less actual spending power. For premium brands, the more affluent catchment may yield better conversion rates, while the volume-driven location can be a strong choice for value-for-money or mid-range products.
The Retail Ecosystem
Smart location analysis examines large retail tenants driving mall traffic, complementary retailers sharing customer bases, and direct competitors that might dilute market share. The surrounding ecosystem gyms, clinics, co-working spaces can attract similar footfall that may convert to customers.
Store Positioning Within Malls
Proximity to main entrances, visibility from major walkways, location relative to escalators, and adjacency to food courts all matter. Industry experts note that top retail chains have reportedly saved significant sums in rent by negotiating effectively.
Global Brands Entering India
India’s retail sector is witnessing unprecedented interest from global brands. Australian fashion giant Cotton On recently announced its India launch through a strategic partnership with Apparel Group, targeting the country’s rapidly expanding demographic of young, premium-buying consumers.
Abhishek Bajpai, CEO of Apparel Group India, notes that the brand’s focus on global style and value-led fashion aligns with shifting preferences of the modern Indian consumer. Apparel Group currently operates thousands of stores globally, with its Indian division managing hundreds of stores across multiple cities.
For foreign brands, India offers multiple entry models: distribution agreements allow market testing with minimal risk; franchising enables rapid expansion with lower investment; wholly owned subsidiaries provide greater control; and joint ventures combine global brands with local expertise essential for navigating India’s regulatory landscape.
Under current regulations, the Government of India permits 100 per cent FDI under automatic route for Single-Brand Product Retail Trading, making this an ideal time for global brands to establish presence in this vibrant market.
Five Critical Mistakes in Indian Site Selection
- Assuming Tier-II Means Lower Costs
Rajesh Jain of Lacoste India cautions: “People often think Tier-II cities mean cheaper rents and higher profitability. That’s a myth. The cost of goods, personnel, and store interiors remain the same as metros. Even rentals, when looked at as a rent-to-revenue ratio, may not be that favourable due to lower sales volumes.”
- Ignoring Micro-Market Nuances
Even within a single city, neighbourhoods differ dramatically. Quest Retail’s Rahul Shanker emphasizes that stores in different locations within the same city may require different design motifs while maintaining brand consistency.
- Copy-Pasting Strategies
Amitabh Suri, CEO of USPA Brands, points out: “You can’t cut corners on staff training or interiors just because you’re in a smaller city. The experience has to be uniform and high-quality to build trust.”
- Neglecting Omnichannel Integration
Anand Aiyer, CEO of Arrow, reinforces: “In these markets, your brand needs to speak across WhatsApp, regional influencers, marketplaces, and local activations. Store presence is just one touchpoint.”
- Underestimating Infrastructure Constraints
From power availability to water supply, infrastructure limitations can derail operations. Meeting directly with utilities and seeking binding contractual commitments for power by specific dates has become essential due diligence.
The Data-Driven Future
Sprouts Farmers Market’s approach to store selection offers lessons for Indian retailers. By revamping analytics and developing models prioritizing local expertise, they examine the interplay of target customers, competitors, trade barriers, and drive times. “We know where we want to be,” says CFO Curtis Valentine. “And then within that, it’s not just the three-mile ring, but the actual cross street where we feel like we’ll do the best.”
In India, data platforms now enable this precision. Pin code-level analysis from e-commerce and brand websites reveals which cities show traction for specific products. Hyperlocal commerce platforms enable same-day delivery, allowing brands to build demand in Tier-II towns without massive physical retail investments.
Gargi Singh, Head of Seller Business at Pincode, observes: “With digital infrastructure improving and platforms enabling same-day delivery, brands are discovering they can build demand in Tier-II towns without massive physical retail investments.”
The Essential Checklist for Indian Markets
Demographic Analysis
- Income levels and purchasing power within catchment
- Cultural preferences and spending habits
- Commuting patterns and accessibility
Competitive Landscape
- Presence of complementary brands
- Direct competitors and market saturation
- Brand adjacencies and positioning alignment
Infrastructure Assessment
- Power availability and reliability
- Water supply and waste management
- Internet bandwidth and digital connectivity
- Transportation access
Regulatory Environment
- Zoning requirements and land use restrictions
- Permitting and approval timelines
- State and local tax implications
- Incentive availability
Talent Availability
- Sufficient qualified employees within hiring pool
- Educational levels and training resources
- Average wage levels compared to peer markets
Financial Viability
- Rent-to-revenue ratio projections
- Break-even analysis with all cost heads
- Revenue sharing versus fixed rent models
- Lock-in periods and exit clauses
The Human Element
Perhaps the most overlooked factor is whether a location is somewhere employees will love to call home. Work-life balance has become a competitive advantage in talent acquisition.
Regions offering diverse housing options, attainable pricing, recreational opportunities, quality education, and reasonable commute times hold significant advantages. For younger professionals who prefer working closer to home, Tier-II cities offering lower costs and better work-life balance are increasingly attractive.
The most successful locations create ecosystems where people want to live, work, and play. Sohna Road exemplifies this approach, with its seamless blend of residential communities, corporate parks, retail destinations, and educational institutions creating a self-sustaining environment.
Conclusion: The Art of the Possible in India
Site selection in the Indian market demands both science and art rigorous analysis combined with strategic vision. The companies that get it right recognize that location decisions ripple through every aspect of operations: talent acquisition, supply chain efficiency, customer access, and long-term growth potential.
For retailers and corporations planning expansion across India, the message is clear: start early, dig deep, and evaluate systematically. The perfect site may not exist, but with thorough due diligence and clear strategic priorities, the right site reveals itself.
As India’s consumption map shifts, retailers who combine data, local insight, premium experience, and digital innovation will emerge as the real winners. The geography of success in modern Indian business belongs to those who understand that location is not just about where you are, it’s about who you are, who you serve, and how you grow.
SkyZenith
SkyZenith stands at the forefront of commercial real estate consultancy in India, offering unparalleled expertise in retail leasing, commercial leasing, and strategic property advisory. The firm transforms properties into thriving hubs of activity and profitability by seamlessly connecting property owners with premier tenants and operators across the subcontinent. SkyZenith’s comprehensive approach encompasses market research and analysis, space optimization, tenant mix planning, lease negotiation and execution, and post-leasing support all tailored to the unique dynamics of Indian markets.
What distinguishes SkyZenith is its commitment to innovation, integrity, and collaboration. The team works closely with developers, landlords, and retailers to unlock the full potential of retail properties from upscale malls in metropolitan centres to high-street formats in emerging Tier-II cities delivering tailored leasing solutions aligned with each client’s unique vision. In the commercial sector, SkyZenith specializes in creating dynamic business environments, providing end-to-end leasing solutions for corporate offices and mixed-use spaces across India’s evolving business corridors.
Beyond leasing, SkyZenith offers mall advisory services, building audits, and sustainability consulting, helping developers and property managers future-proof their assets while maintaining optimal performance and compliance. With a proven track record trusted by leading developers and international brands, deep industry insights spanning India’s diverse markets, and an extensive network of global and boutique brand partnerships, SkyZenith delivers measurable outcomes that boost revenue and enhance property value. The firm’s advocacy for eco-conscious practices ensures clients receive future-proof solutions aligned with evolving sustainability standards. For organizations seeking to transform commercial spaces into landmarks of opportunity and growth across India, SkyZenith provides the strategic partnership that turns challenges into opportunities.
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