Retail leasing grows 24% year-on-year in the first half of 2023
Retail leasing in India witnessed a 24% Y-o-Y growth in Jan-June’23 period and a 15% increase compared to Jul-Dec’22 period, according to a CBRE report. Total leasing during Jan-Jun’23 stood at 2.87 mn sq ft compared to 2.31 mn sq ft (Y-o-Y). Bangalore, Delhi-NCR, and Ahmedabad collectively accounted for a cumulative share of 65% in leasing activity during the first six months this year.
The Jan-Jun’23 period also recorded a 148% Y-o-Y increase in supply. Total supply in Jan-June’23 stood at 1.09 mn. sq.
ft. compared to 0.44 mn. sq.
ft.(Y-o-Y). “We anticipate that secondary leasing will continue to thrive while primary leasing is set to gain momentum, driven by a robust supply pipeline and the approaching festive season. With the likelihood of more international brands entering the market across various categories, we are witnessing growing traction in the luxury segment,” said Anshuman Magazine, Chairman & CEO — India, South-East Asia, Middle East & Africa, CBRE.
Further, boosted by the increased appetite of shoppers, the top eight cities saw an 8% growth in mall completions on a half-yearly basis. Ahmedabad led the growth in supply addition with a 73% share, followed by Delhi-NCR at 20%. During the Apr-June’23 quarter, total leasing stood at 1.3 mn.
sq. ft. The combined share of Bangalore and Delhi-NCR in retail space leasing stood at 59%.
During this period, Bangalore emerged as the frontrunner in leasing, capturing a significant 35% share in overall leasing, followed by Delhi NCR with a 24% share, while Chennai secured a 14% share. Hyderabad also displayed strong performance, claiming an 11% share in total leasing during this period. The leasing activity during the quarter was primarily driven by fashion & apparel
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