High Streets Emerge Top Leasing Choice for Luxury Brands in 2023, Malls Remain Second

Malls remain the second most preferred luxury realty category, with 300% Y-o-Y growth with high streets lead with about 45% share in India’s overall luxury retail leasing in 2023

Luxury brands leased 0.3 mn. sq. ft. of space in the high street store formats, registering over 100% Y-o-Y increase, while leasing in luxury stores in shopping malls stood at 0.24 mn. sq. ft., at over 300% Y-0-Y increase in 2023, announced real estate consulting firm CBRE South Asia Pvt. Ltd. and PHD Chamber of Commerce and Industry in a joint report.

Titled "The Ascent of Indian 'Luxe RE"," the report highlights luxury retail leasing patterns across various retail formats from 2022 to 2023. In 2023, stores across high streets, typically open marketplaces in a prominent area with a strong retail presence, remained the top choice for luxury brands in India's top eight cities. Leasing in standalone stores by luxury brands stood at 0.1 mn. sq. ft. during the year, at over 200% Y-o-Y increase.

Overall Growth Across Industry

The overall leasing by luxury brands across the formats stood at 0.6 mn. sq. ft. in 2023, at almost 170% Y-0-Y growth. While high streets constituted a 45% share in the overall luxury retail leasing in 2023, luxury brands' stores in malls followed at 40% and standalone stores accounted for the remaining 15%. CBRE understands that this surge in leasing has been accompanied by the entry and expansion of various international luxury fashion, watch and jewellery brands across different locations.

The eight cities tracked for leasing include Delhi-NCR, Mumbai, Bangalore, Kolkata, Pune, Ahmedabad, Chennai, and Hyderabad.

While several luxury brands are present in the prominent malls and high streets in India, there are specific malls and high streets that cater exclusively to the discerning luxury clientele. These select destinations are carefully curated to offer a unique luxury retail experience, featuring a concentrated collection of high-end brands, and providing an environment that aligns with the expectations and preferences of luxury shoppers.