Bengaluru, Delhi-NCR, and Pune jointly dominated the retail leasing landscape, constituting more than 61 percent of the total leasing activity during the January-September 2023 period. According to a report by CBRE, the retail sector leased approximately 4.73 million square feet of space during this period, marking a substantial 46 percent increase compared to the 3.23 million square feet (msf) leased during the same period last year in India’s top eight cities.
Apart from the major contributors mentioned earlier, Mumbai, Hyderabad, Chennai, Kolkata, and Ahmedabad also witnessed leasing activity.
In addition to the surge in leasing, there was a remarkable 577 percent year-on-year increase in supply additions from January to September, surpassing 2.98 msf.
Leasing was predominantly driven by fashion/apparel and home/department stores, accounting for a significant share of over 50 percent.
Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East, and Africa at CBRE, expressed optimism about the future: “With the surge in newly available spaces and the onset of the festive season, we anticipate a continued upswing in space utilization. Although we expect consumer spending and retail sales to stabilize compared to the unprecedented growth of the previous year, we foresee continued growth in categories such as restaurants, hotels, transportation services, vehicle purchases, as well as apparel and footwear.”
During the July-September 2023 quarter, total leasing activity reached 1.84 msf, with Bengaluru and Pune commanding a combined share of 59 percent of the retail space leasing market.
Bengaluru emerged as the frontrunner, securing a significant 35 percent share, followed by Pune with 24 percent and Hyderabad with 14 percent.
Delhi-NCR also contributed significantly, holding an 11 percent share of the total leasing during this period. Fashion and apparel brands played a leading role in leasing activities, claiming a 33 percent share in the top eight cities during this period.
During July-September, the top eight cities also saw a notable 100 percent year-on-year growth in mall completions. Pune led the growth in supply additions with a 58 percent share, followed by Delhi-NCR at 19 percent. Domestic firms dominated the leasing activity with a 68 percent share, followed by retailers from Europe, the Middle East, and Africa (22 percent), Asia Pacific (8 percent), and America (3 percent).
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