Retail sector leasing witnessed 46 per cent y-o-y growth in the Jan-Sep’23 period with the total absorption across the top eight Indian cities stood at 4.73 mn. sq. ft., compared to 3.23 mn. sq. ft. in Jan-Sep’22, according to CBRE, based on India Market Monitor Q3 2023’.
Fashion and apparel and home and department stores accounted for over 50 per of leasing. In terms of cities, Bangalore, Delhi-NCR, and Pune collectively accounted for a share of over 61 per cent in leasing activity during this period. Supply addition also recorded a 577 per cent y-o-y increase in January-Sep’23, crossing 2.98 mn. sq. ft.
During the July-Sep’23 quarter, total leasing stood at 1.84 million sq. ft. The combined share of Bangalore and Pune in retail space leasing stood at 59 per cent. Bangalore emerged as the frontrunner in leasing, capturing a significant 35 per cent share, followed by Pune with a 24 per cent share and Hyderabad with a 14 per cent share. Delhi NCR also had an 11 cent share of total leasing during this period.
“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,” said Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE.
During July-Sep’23, the top 8 cities also saw 100 per y-o-y growth in mall completions. Pune led the growth in supply addition with a 58 per cent share, followed by Delhi-NCR at 19 per cent. During this period, the share of leasing activity was led by domestic firms (68 per cent), followed by retailers from EMEA (22 per cent), APAC (8 per cent), and America (3 per cent).