CBRE South Asia Pvt. Ltd. In its, ‘2023 India Market Outlook report highlighted the key trends and projections for the Indian real estate sector this year. According to the report, retail leasing is expected to touch 5.5 – 6 mn sq. ft. in 2023, the highest level after the 2019 peak of 6.8 mn. sq. ft. It is expected that primary leasing in newly completed malls will remain the key driver of retail space demand in 2023. The supply scenario is set to improve as not only a significant amount of pent-up supply lined up for completion during 2023, but several investment-grade projects launched by reputed players in the past 1.5 - 2 years are also expected to become operational in 2023. As per the report, it is estimated that supply would touch ~ 6 mn. sq. ft. in 2023, the highest in the past five years.
The report further highlights that Indian consumers have remained optimistic about their personal finances, especially compared to other economies. This was reflected in CBRE India’s Live-Work-Shop consumer sentiments survey conducted in late 2022, wherein 77% of respondents revealed their confidence about their personal finances.
Retailers will continue to carve out success in diverse locations. Most of the brands have an existing customer base which is willing to explore locations where retailers have used innovative concepts to draw a crowd. Currently, this trend is mostly prevalent among F&B retailers, but other categories are also likely to adopt this approach to expand their footprint and existing customer base. In a bid to diversify their location strategies further, several international brands in the F&B and apparel segments are also opening stores along expressways or highways.