Retail leasing touches record high

Retailers in India leased nearly 4.7 million square feet of space across top cities in 2022. So says CBRE.

Leasing in 2023 is expected to outpace even the 2019 level when retailers cumulatively took up a record 6.8 million sqft of new space. Bangalore and Delhi-NCR had a major share (61 per cent) in leasing activity in 2022, while Chennai, Hyderabad, and Pune had a nine per cent share each.

Given the robust supply pipeline planned for 2023, and strong domestic consumption, leasing activity is anticipated to remain steady. More international brands, especially in the food and beverage space, are expected to enter the country. On a pan-India basis, Bangalore recorded the highest share of mall completionsin the fourth quarter followed by Pune.

Key sectors that drove the leasing activity in the fourth quarter were fashion and apparel, homeware and department stores, hypermarkets, food and beverage and luxury.

Going forward, retail leasing is expected to gain traction in Tier II, III, and even IV cities as retailers and landlords are looking to leverage the purchasing power of these towns and cities. Activity in these cities is expected to remain strong from domestic retailers, with international retailers expected to be more active in the apparel and QSR segments.