Some 4.73 million square feet of space was taken on lease by the retail sector in the January-September 2023 period, up 46 percent from last year's 3.23 million sq ft (msf), across top eight cities in India, according to a report by CBRE.
Bengaluru, Delhi-NCR, and Pune collectively accounted for a share of over 61 percent in leasing activity during this period. Mumbai, Hyderabad, Chennai, Kolkata, and Ahmedabad were the other cities.
The supply addition also recorded a 577 percent on-year increase in the January-September period, crossing 2.98 msf.
Fashion/apparel and home/department stores accounted for over 50 percent share in leasing.
“With the surge in newly available spaces and the onset of the festive season, we anticipate a continued upswing in space utilisation. Although we expect consumer spending and retail sales to stabilise 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," Anshuman Magazine, chairman and CEO for India, South-East Asia, Middle East and Africa at CBRE, said.
During the July-September 2023 quarter, total leasing stood at 1.84 msf. The report said the combined share of Bengaluru and Pune in retail space leasing stood at 59 percent.
Bengaluru emerged as the frontrunner in leasing, capturing a significant 35 percent share, followed by Pune with a 24 percent share and Hyderabad with a 14 percent share.
Delhi-NCR also had an 11 percent share in total leasing during this period. Fashion and apparel brands led leasing activity with a 33 percent share in the total leasing in the top 8 cities during this period.
"During July-September, the top eight cities also saw a 100 percent on-year growth in mall completions. Pune led the growth in supply addition with a 58 percent share, followed by Delhi-NCR at 19 percent. During this period, the share of leasing activity was led by domestic firms (68 percent), followed by retailers from Europe, the Middle East, Africa (22 percent), Asia Pacific (8 percent), and America (3 percent).
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