Retail leasing space is on the rise

Registers 24% growth in first six months
Supply of the retail space grows by 148%
Discloses CBRE report

In the first six months, the retail space leasing activity is on the rise across the country, registering 14% annual growth, to reach 2.87 million sft-mark, according to renowned real estate consulting organisation CBRE South Asia Private Limited. According to India Market Monitor Q2 report for 2023, the growth is 15% compared to the retail space leasing accomplished during July-December period of last year, 2.31 million sft.

The total share of the Bengaluru, Delhi and Ahmadabad in the total retail leasing activity is put at 65%. Similarly, the supply of retail space to the market grew by 148% during January-June this year. During the corresponding period last year the growth of retail space was 0.44 million sft as against 1.09 million sft during the first six months of this year. With regard to the retail space in malls, the growth across eight main cities of the country was put at 8%. Ahmadabad market ranked top with 73% supply of the space to the market, followed by Delhi with 20% share. During April-June this year, the total leasing of retail space was put at 1.3 million sft. The share of Bengaluru and Delhi in retail space leasing is put at 59%., which includes 35% of Bengaluru. The share of Chennai in this is put at 14%. Of the total leasing activity, the share of Hyderabad is put at 11%.

The share of fashion and garments sector during the period is put at 38%, while the food and beverages sector contributed 18%. Luxury, home and department store share is put at 11%, while that of electronics sector is put at 7%. The contribution of the domestic organisations in the total leasing activity achieved during April-June period was 75%, the share of APAC was put at 12%, EMEA share is put at 10%. The contribution of US companies to this is put at 3%. The retail space leasing activities achieved during the first six months of this year have created a positive sentiment that the activities during the next quarter would be promising.

The prediction is that the retail leasing activities would develop manifold during the second half year of this year. There is scope for many global brands entering the market in various categories the luxury sector is likely to experience more growth, CBRE South-East Asia Middle-East and Africa CEO and Chairman Anshuman Magazine remarked. Meanwhile, the rents have registered a growth of 18% from 13% in South Kolkata, 12% from 8% in East Kolkata and 2% in Bengaluru markets, the report said.