Main Streets Continue to Dominate India's Retail Leasing in Q2 2024
Cushman & Wakefield's Q2-2024 Retail MarketBeat Report highlights the dominance of main street retail leasing, with 70% of total leases in Q2 2024.
Retail LeasingMain StreetsCushman WakefieldReal EstateIndiaReal Estate PuneJul 08, 2024
The rental growth across prominent main streets in Q2 2024 further underscores their growing appeal. Cities like Kolkata, Bangalore, Hyderabad, and Mumbai have all experienced significant year-on-year rental increases, demonstrating strong demand and potential for high-street retail in the country.
In terms of supply, while the first half of 2024 saw no new mall supply enter the market, the second half is anticipated to witness a surge in retail space, with an addition of approximately 4.5 million square foot (msf) of primarily Grade-A malls. Mumbai is anticipated to lead the supply with 1.2 msf, followed by Chennai at 1.2 msf, Delhi-NCR at 1.2 msf, and Bangalore at 0.9 msf.
The tightness in the superior-grade retail real estate space can also be seen in the retail portfolio of NEXUS Select REIT, where occupancies have reached around 98%. The REIT's stock prices have climbed nearly 30% since its IPO in May 2023, and looking at the under-penetration, it has announced a near doubling of portfolio size over the next 5 years.
Saurabh Shatdal, head retail and managing director, Capital Markets, Cushman & Wakefield, commented, 'The second quarter of 2024 was marked by a strong demand for both Grade A malls and high street retail. The growth in both formats underscores the vibrancy of India's retail landscape.'
The report also highlights the performance of various cities, including Delhi-NCR, Mumbai, Bangalore, Hyderabad, Kolkata, Pune, Chennai, and Ahmedabad. Each city has its own unique retail landscape, with main streets and malls experiencing varying levels of demand and supply.
Overall, the report suggests that main streets will continue to dominate India's retail leasing landscape, driven by strong demand and limited supply of high-quality retail spaces.
Frequently Asked Questions
What is the main focus of retailers in India?
Retailers are increasingly focusing on main streets in prominent locations across India.
What is the rental growth trend across prominent main streets in Q2 2024?
Cities like Kolkata, Bangalore, Hyderabad, and Mumbai have all experienced significant year-on-year rental increases.
What is the expected surge in retail space in the second half of 2024?
An addition of approximately 4.5 million square foot (msf) of primarily Grade-A malls is expected.
What is the occupancy rate of NEXUS Select REIT's retail portfolio?
The occupancy rate has reached around 98%.
What is the expected growth of NEXUS Select REIT's portfolio size over the next 5 years?
A near doubling of portfolio size is expected.
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