Retail Leasing Expected To Reach 6-6.5 Mn. Sq. Ft. In 2024
CBRE South Asia Pvt. Ltd., India’s report highlights key trends and projections for the Indian real estate sector this year. According to the report, the estimated leasing in the retail sector is expected to sustain between 6-6.5 mn. sq. ft. in 2024, fueled by primary leasing activity. The report also highlights a stable supply environment for the retail sector in 2024 due to the completion of numerous high-quality mall developments. By the year-end, 5-6 mn. sq. ft. of investment-grade mall space will become operational tier-I cities. In 2024, among the retail categories, the home décor segment is likely to expand in online and offline formats, while fashion and apparel players will continue expanding in tier-I cities across malls and high streets. Domestic jewellery brands are also expected to continue to expand. Emerging as an alternative to traditional cinema halls, the growing interest of consumers in the entertainment category is likely to lead to more traction in leasing as well. The report indicates that retailers, including anchor tenants and established brands, are expected to proceed cautiously with expansion plans. They will prioritize locations with high visibility, strong foot traffic and favourable consumer demographics. As a result, rental growth is expected to rationalize across both primary and secondary locations. Moreover, while well-established domestic brands with a solid presence are likely to proceed cautiously with their expansion plans, international newcomers aiming to establish themselves, especially in tier-I cities, are anticipated to persist with their expansion strategies despite global economic challenges. Retail demand across investment-grade malls, prominent high streets and standalone developments has grown consistently since 2020. The year 2023 reported absorption of nearly 7.1 million sq. ft., a 47% Y-o-Y growth in tier-I cities. Leasing activity was primarily driven by Bangalore, Delhi-NCR and Mumbai, with the three cities cumulatively accounting for nearly 61% share.
Tags : CBRE South Asia Pvt. Ltd. primary leasing activity investment-grade malls rental growth expansion plans international