The Indian retail market is witnessing robust leasing activity across the top seven cities, highlighting the sustained appeal of prime locations driven by rising consumption. According to a study by JLL India, gross leasing of retail spaces in cities such as Mumbai, Delhi NCR, Bengaluru, Kolkata, Chennai, Pune, and Hyderabad are projected to exceed 6.5-7 million sq. ft by the end of 2024, following a total of over 5.3 million sq. ft in the first three quarters of 2024. Despite the limited addition of new retail space, slightly above one million sq. ft, the strong leasing activity demonstrates retailers’ preference for prime locations. Fashion and apparel accounted for the largest share at 37%, followed by food & beverage at 18% and entertainment at 12%.
Bengaluru, Delhi NCR, and Mumbai are the frontrunners, representing 59% of total leasing activity. The demand for luxury and bridge-to-luxury retail remains strong, with high-end brands securing 0.15 million sq. ft in the first nine months of 2024, predominantly in Delhi NCR and Mumbai, which accounted for 76% of this leasing. In the same period, India welcomed 20 new international retailers, with over half selecting Delhi NCR for their inaugural stores. Domestic retailers dominated the gross leasing with a 78% share, leasing over 4 million sq. ft in the first nine months of 2024. Direct-to-consumer brands also contributed approximately 7% to total gross leasing, as malls gained popularity among these brands seeking enhanced consumer engagement through experiential retail. International retailers leased over one million sq. ft, with European, Middle Eastern, and African brands leading with a 56% share.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.