Indian retail space leasing soars in Q1 2023, signals sector’s strong growth
1 min read 02 May 2023, 06:08 PM ISTThe CBRE report also highlights a staggering 474% year-on-year increase in retail supply during the same period, reflecting robust growth in the sector.
PremiumNew Delhi: The retail space leasing in India has more than doubled to 1.5 million square feet in Q1 2023, a new report from real estate consulting firm CBRE has said.The ‘India Market Monitor – Q1 2023’ report also highlights a staggering 474% year-on-year increase in retail supply during the same period, reflecting robust growth in the sector.
Ahmedabad led the absorption with a 27% share, followed by Delhi-NCR at 26%, and Bangalore and Chennai at 14% each. The three cities accounted for 81% of total leasing. Ahmedabad also dominated the supply with a 73% share during the first quarter of the year, trailed by Delhi-NCR at 20%.
The report indicated that fashion & apparel made up the largest share of total leasing activity at 31%, followed by homeware and department stores at 19%, F&B at 11%, luxury at 8%, and consumer electronics at 5%.
Anshuman Magazine, CBRE’s Chairman & CEO for India, South-East Asia, Middle East & Africa, predicts that retail supply in 2023 will surpass 2022 levels, driven by pent-up supply addition and investment-grade projects launched in the past two years. This increase in supply is expected to boost primary leasing, which will likely be the main demand driver for retail space in 2023.
Ram Chandnani, Managing Director of Advisory & Transactions Services at CBRE India, anticipates that retailers will diversify their location plans, extending beyond conventional malls and high streets to modify supply chains and cater to consumer demands. Chandnani also expects that omnichannel initiatives, such as metaverse and social commerce, will gain traction in the near future.
