Retail Sector Records Strongest Hi Leasing in 5 years: CBRE

Leasing in Bengaluru, Chennai, and Delhi-NCR accounted for 59% share during Jan-June 2024.

Retail leasing reached a 5-year high during JanJune 2024, taking 3.1 mn. sq. ft. across eight cities compared to last 5-year H1 period, as per the report findings announced by CBRE. On an annual basis, retail leasing witnessed a growth of 7% Y-o-Y in H1 2024 to touch 3.1 mn. sq. ft, compared to 2.9 mn. sq. ft. in Hi 2023. The report, 'India Retail Figures H1 2024' highlights real estate growth, trends, and dynamics across the retail sector in India.

In H1 2024, the absorption was led by Bengaluru, followed by Chennai and Delhi-NCR, accounting for nearly 59% of the total leasing. In the coming quarters, the influx of investment-grade mall supply will influence primary leasing trends, while leading malls across key cities will continue to witness strong demand for secondary spaces.

Strong demand for fashion & apparel products continued in H1 2024, primarily led by midrange, value fashion and athleisure brands, resulting in a ~39% share by fashion & apparel retailers during H1 2024. The entertainment sector (~13%) and Homeware and Department Store (~11%) were the other categories that drove leasing during the review period.

India continues to experience positive retail growth, attracting foreign retailers to establish a presence in key locations. Charles Tyrwhitt, a men's luxury fashion brand from the United Kingdom, opened its first store in Ahmedabad.

Additionally, Maison Margiela, a French luxury fashion brand, and Franck Provost, a French beauty and wellness brand, entered the Indian market by opening its first stores in Mumbai and Bengaluru, respectively. Other noteworthy expansions include the opening of stores by international brands, such as the Swiss luxury watch brand Breitling and the American luxury fashion brand Michael Kors in Chennai and Pune, respectively. In addition, the Japanese homeware brand Daiso Japan and the skincare and cosmetics brand ILEM Japan also opened stores in Chennai.