The real estate industry is going steady at a time when it is reeling under conditions like the Corona epidemic, the Russia-Ukraine war and the threat of recession. Although there are setbacks in some parts of the world, it is gradually recovering in our country. Recently, it has been found that retail leasing in malls in Hyderabad has improved. In July-December 2022, CBRE South Asia Pvt Ltd has stated in a recently released report that there has been a growth in retail leasing in Hyderabad.
Leasing of around 0.21 million square feet in investment grade malls, high streets and standalones between July-December 2022 has revealed. While fashion apparel accounted for 51 percent of the total leasing, food and beverages accounted for 25 percent and hypermarkets for 10 percent.
- Azarty has leased 15,000 sft in Sarat City Capital Mall
- Haiku Brew has leased 15,000 sft in Sarat City Capital Mall
- Pantaloons has leased 14,000 sft in Jains Balaji Big Town
- On a pan-India basis, retail leasing is expected to grow by 21 percent annually in 2022
- In 2022, this leasing will reach 4.17 million sft, while the supply is only 1.45 million square feet
- For July-December 2022, retail leasing increased by 5 percent on a half-yearly basis to 2.43 million square feet, while supply increased by 129 percent to nearly one million square feet
- Bengaluru, Delhi, Chennai and Mumbai together account for 80 percent of the total leasing transactions
- Fashion and apparel retailers continue to dominate. They have a share of 42 percent in the total leasing
- People are again flocking to retail shops and malls as normalcy returned in the cities in the post-pandemic situation. They are visiting e-commerce as well as physical stores. They are opting for hybrid commerce which is a mixture of offline and online
- Anshuman Magazine, Chairman and CEO, CBRE India, South East Asia, Middle East and Africa believes that the Indian retail sector is currently recovering and will gain more momentum in 2023. It is mentioned that many international brands are expanding their activities not only to Tier-1 cities but also to the Tier-2 and Tier-3 cities even in the difficult global economic slowdown conditions.
Ram Chandanani, Managing Director of CBRE India Advisory and Transactions Services, said that many people are returning to physical retail stores after Corona. Since then, they are choosing hybrid commerce. It is explained that the sales of July-December 2022 exceeded the level before Corona. It has been clarified that leasing momentum in January-June 2023 in the newly completed malls is certain. The report also revealed that rental values have increased on a half-yearly basis in some micro-markets in most cities, driven by strong retail demand. Rents in select locations in Delhi and Bengaluru have increased by between 4 percent and 8 percent, while Ahmedabad has seen an increase of 4 to 12 percent. Leading mall clusters in Delhi have seen rental growth of 3 to 15 per cent, while Bangalore has seen rental growth of 2 to 6 per cent.
Highlights of July-December 2022 report..
– Expansion of international and domestic brands continues in Delhi. Leasing of 0.54 million square feet was done during this period. Fashion and apparel accounted for 34 percent, while hypermarket accounted for 12 percent and food and beverages accounted for 9 percent.
– Supply picked up fast in Bangalore. Leases in new malls have picked up momentum. A total of 0.91 million square feet were leased. Here the share of fashion and apparel is 42 percent, while the share of food and beverages is 13 percent and the share of entertainment sector is 11 percent.
– Demand for secondary space in Mumbai is high. Leasing of 0.22 million square feet was done here. While fashion and apparel share 30 percent, luxury has 15 percent and F&B 10 percent.
– Leasing business in Chennai has received pre-Corona level. Leasing of 0.26 million square feet was done here. Fashion and apparel (52 per cent), consumer electronics (18 per cent) and luxury (7 per cent) share.
– Retail leasing of 0.10 million square feet in Pune.
– 0.14 million square feet leasing took place in Kolkata.
– It is remarkable that the share of fashion and apparel together is 71 percent.
