· First quarter of 2023 registers 130% growth
The retail sector leasing is marching ahead in the country. Compared to the first quarter in 2022, the retail leasing sector recorded impressive performance recording 130 per cent growth. In this sector, the cities of Ahmadabad, Delhi, Bangalore and Chennai occupied the first four positions. According to real estate consultancy CBRE South Asia Private Limited, the retail sector in the first quarter grew by 130 % and stood at 1.5 million sft. Supply rose by 474 % to 1.1 million square feet during the same period.
While Ahmedabad is at the top with 27 % share in leasing, the share of Delhi is 26 % and that of Bangalore and Chennai is 14 % hare each. The cumulative leasing of the three cities is put at 81 % of the total leasing. As far as Hyderabad is concerned, leasing activity was 0.01 million square feet in Q-1 last year as against 0.07 million sft in Q-1 2023. Overall, the leasing of 0.7 million square feet in Q1 last year in the seven major cities of the country has increased to 1.5 million square feet in Q1 this year.
The report reveals that the fashion and apparel segment has a majority share of 31 % in the total leasing activities. Homeware and department stores account for 19 %, F&B 11 %, luxury 8 % and consumer electronics 5 %.
Office leasing was recorded at 12.6 million square feet in Q1 2023 with a growth of 9 %. Also, the supply was recorded at 11.6 million square feet with a growth of 31 %. Domestic corporates are leading in leasing with a share of 48 %. House sales have also picked up momentum. Compared to the first quarter of last year, there was a growth of 12 %. Also new unit launches increased by 35 % and reached the 81,000 mark. It is noteworthy that Mumbai, Pune and Delhi have a share of 64 % in the apartment launch. Of the total launches, 43 % are related to mid-end launches while 27 % are high-end units.
When it comes to investments in the real sector, the report revealed that the total capital inflows in Q1 2023 were recorded at 0.96 billion dollars. While land or developed sites have a share of 43 %, the I&L segment is second with 23 %. It is noteworthy that Mumbai, Delhi and Bangalore together have a share of 30 % of the total investments. Developers hold 65 % of the investments, while institutional investors hold 17 %. It is noteworthy that the share of domestic investors in Q1 2023 is 80 %. Meanwhile, CBRE South East Asia, Middle East, Africa Chairman and CEO Anshuman Magazine stated that retail supply this year is expected to be higher than 2022 in leasing matters.
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