Retail real estate leasing soars 46% in eight major cities

The leasing of retail real estate space witnessed a 46 per cent increase in the period from January to September across eight major cities, totaling 4.73 million square feet. This boost in demand was attributed to retailers seeking space, according to CBRE.

In contrast, the absorption of retail space in the same period last year was 3.23 million square feet. The data focuses on the absorption of retail properties in shopping malls, prime high street locations, and standalone retail spaces.

Breaking it down by cities, Bengaluru, Delhi-NCR, and Pune collectively contributed to more than 61 per cent of the leasing activity during this period.

Retail space leasing up 46% in major cities | Image credit: Pexels
 

Retail space and outlook

Anshuman Magazine, the Chairman & CEO, CBRE India, South-East Asia, Middle East, and Africa, highlighted the notable growth in retail space absorption and new supply additions. He anticipated a continued increase in space utilisation with the availability of new spaces and the onset of the festive season.

Magazine also highlighted the transformative phase in the retail sector, where retailers are eager to enhance in-store experiences through advanced technology, personalised services, and efficient space utilisation. While the expectation is for consumer spending and retail sales to stabilise compared to the remarkable growth of the previous year, growth is still expected in categories like restaurants, hotels, transportation services, vehicle purchases, as well as apparel and footwear.

City-wise distribution

In terms of leasing during the January-September period, the fashion & apparel sector accounted for 34 per cent, home & department stores for 17 per cent, and food and beverage for 13 per cent of the activity.

The distribution of retail space leasing in various cities included 0.9 million square feet in Delhi-NCR, 1.4 million square feet in Bengaluru, 0.3 million square feet in Mumbai, 0.5 million square feet each in Hyderabad and Chennai, 0.6 million square feet in Pune, 0.1 million square feet in Kolkata, and 0.4 million square feet in Ahmedabad.