A joint report by CBRE South Asia and the PHD Chamber of Commerce and Industry revealed a remarkable surge in luxury leasing activity in India, with leased area reaching 0.60 million square feet (MSF) in 2023, an increase of 170% from 2022. This surge is attributed to consumers’ heightened awareness of luxury brands, driven by the expanding middle and upper-class demographics and the influential role of the internet and social media.
Luxury brands high street stores emerged as the preferred leasing option, accounting for 45% (0.3 MSF) of the total leased area, while malls contributed 40% with a leased space of 0.24 MSF, marking a 300% increase from the previous year. Standalone stores saw a 200% increase in leasing activity, capturing a 15% share of the total luxury leasing. Established luxury brands are actively pursuing expansion opportunities in metro cities and responding to the demand from Tier-II cities, reflecting India’s growing stature as a hub for global luxury brands. Mr. Anshuman Magazine, Chairman and Chief Executive Officer (Southeast Asia, West Asia, and Africa) at CBRE, highlighted India’s increasing international exposure and its impact on the luxury retail sector, indicating a promising trend for the entry and expansion of international luxury brands in the Indian market.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.