Retail space leasing soaring in India – Here’s why

financialexpress.com:

India’s retail sector is witnessing a constant surge in demand and healthy leasing across Grade A retail spaces. Growing consumer base, evolving lifestyle, urbanisation, rising disposable income, the convergence of online and offline retail, and investments in retail infrastructure are attributed for the rise in the leasing activity of retail spaces.

According to a recent report by CBRE, retail leasing witnessed a significant hike of 24 percent year-on-year in the first half of 2023 compared to a 15 percent growth in the year-ago period. The first six months of 2023 witnessed total leasing at 2.87 mn sq ft compared to 2.31 mn sq ft. Bengaluru, Delhi-NCR, and Ahmedabad collectively accounted for 65 percent of the total share of leasing.

As the future of the retail sector in India looks sanguine, mall and retail real estate developers are capitalising on the hiked demand by planning new launches. A report of India Market Monitor-Q12023 shows substantial new supply during Q1 2023 with a staggering 474 percent year-on-year rise. Ahmedabad led the leasing activity with 27 percent, followed by Delhi-NCR at 26 percent and Bangalore and Chennai at 14 percent each.

Industry players are confident of the strengthened market sentiments. The increase in supply may boost primary leasing, which could be seen as a key demand driver for retail space leasing in the current year.

Commenting on the same, Akash Nagpal, VP, Leasing & Business Development, Trehan Iris, said, “India’s strong economic condition and increased disposable income of young professionals have fuelled retail sales across the categories. Backed by positive market sentiments, brands and retailers are aggressively expanding their footprints. Industry trends highlight that