Retail Leasing Continues to Thrive in 2024 with a Robust Supply Pipeline Expected in 2025
Real estate consulting firm CBRE South Asia Pvt. Ltd has released its latest report, India Retail Figures H2 2024, shedding light on the current trends in the retail leasing sector and the outlook for the coming year.
Retail LeasingReal EstateCbreIndiaEconomic TrendsReal EstateJan 22, 2025
Ltd, a leading real estate consulting firm, has recently published its India Retail Figures H2 2024 report, which offers a comprehensive overview of the retail leasing market in India.
The report highlights the continued strength of the retail sector in 2024, driven by a resurgence in consumer confidence and increased economic activity.
Moreover, it projects a robust supply pipeline for 2025, indicating that the momentum is set to continue.
According to the report, retail leasing activities have been particularly robust in major metros like Mumbai, Delhi, and Bengaluru.
The demand for retail spaces has been fueled by a combination of factors, including the recovery of the consumer market, increased footfall in physical stores, and the expansion of e-commerce players into offline retail.
These trends have led to a healthy absorption rate and stable rental growth in key cities.
One of the key highlights of the report is the strong performance of tier-II and tier-III cities, which have seen a notable increase in retail leasing activities.
This growth can be attributed to the expansion of retail chains and the development of new shopping complexes in these regions.
The report suggests that the trend is likely to continue, driven by the rising disposable income levels and the growing middle class in these areas.
CBRE’s analysis also points to the importance of quality and location in retail leasing.
High-quality retail spaces in prime locations continue to attract premium rents, while properties in less desirable locations face greater challenges.
This disparity underscores the need for developers to focus on creating well-designed and well-located retail spaces to meet the evolving needs of consumers.
The report further notes the impact of technology on the retail sector.
The integration of digital tools and data analytics has become increasingly important for retailers to enhance customer experiences and optimize operations.
Online-to-offline (O2O) strategies, which combine the strengths of e-commerce and brick-and-mortar stores, are gaining traction and are expected to play a significant role in the future of retail.
CBRE’s forecast for 2025 indicates that the retail leasing market will remain strong, with a robust supply pipeline expected to meet the growing demand.
The development of new retail projects is anticipated to be concentrated in key cities as well as in emerging markets.
This supply is expected to cater to a diverse range of retail formats, from large-format hypermarkets to specialized boutiques.
However, the report also cautions that economic uncertainties, such as inflation and geopolitical tensions, could pose risks to the retail sector.
Retailers and developers will need to be agile and adaptable to navigate these challenges and capitalize on the opportunities presented by the evolving market landscape.
CBRE South Asia Pvt.
Ltd is a leading real estate consulting firm in India, providing a wide range of services including market research, advisory, and transaction management.
The firm’s expertise and insights are widely recognized in the industry, making its reports a valuable resource for stakeholders in the real estate sector.
In summary, the India Retail Figures H2 2024 report by CBRE South Asia Pvt.
Ltd paints a positive picture of the retail leasing market in 2024, with strong performance in major cities and growing activity in tier-II and tier-III markets.
The outlook for 2025 is optimistic, with a robust supply pipeline expected to meet the increasing demand for retail spaces.
Frequently Asked Questions
What is the current state of the retail leasing market in India according to CBRE's report?
According to CBRE's India Retail Figures H2 2024 report, the retail leasing market is thriving, with strong performance in major metros and growing activity in tier-II and tier-III cities.
What factors are driving the demand for retail spaces in India?
The demand for retail spaces is being driven by a combination of factors, including the recovery of the consumer market, increased footfall in physical stores, and the expansion of e-commerce players into offline retail.
How is the integration of technology impacting the retail sector?
The integration of technology, such as digital tools and data analytics, is becoming increasingly important for retailers to enhance customer experiences and optimize operations. Online-to-offline (O2O) strategies are gaining traction.
What is CBRE's forecast for the retail leasing market in 2025?
CBRE forecasts that the retail leasing market will remain strong in 2025, with a robust supply pipeline expected to meet the growing demand. New retail projects are anticipated to be concentrated in key cities and emerging markets.
What risks does the retail sector face, according to the report?
The report cautions that economic uncertainties, such as inflation and geopolitical tensions, could pose risks to the retail sector. Retailers and developers will need to be agile and adaptable to navigate these challenges.
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