Retail Leasing Surges to 8.1 Million Sq Ft in 2024 Across Eight Major Cities; Bengaluru Leads
The retail leasing market across India witnessed a significant uptick in 2024, with a total of 8.1 million square feet leased across eight major cities. Bengaluru emerged as the top performer, accounting for a substantial share of the leasing activity.
Retail LeasingIndian Retail MarketBengaluru RetailRetail RecoveryRetail FormatsReal Estate MumbaiJan 25, 2025
This unprecedented growth highlights the robust recovery and expansion of the retail sector, driven by various factors including increasing consumer confidence, investment in e-commerce, and the reopening of physical stores following the pandemic.
Bengaluru, the tech hub of India, has led the way with a significant amount of retail space leased, followed closely by Mumbai, Delhi-NCR, and Hyderabad.
The success of Bengaluru can be attributed to its vibrant economy, a growing middle class, and a strong presence of tech companies that have fueled demand for retail spaces.
According to industry experts, the retail sector is witnessing a strong revival, with both domestic and international brands expanding their footprint in these cities.
The reopening of malls and the return of footfall post-pandemic have been crucial in driving this growth.
Additionally, the rise of e-commerce has not diminished the importance of physical retail spaces; instead, it has complemented them, creating a hybrid model that enhances the overall shopping experience.
The eight cities that contributed to this leasing activity are Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad.
These cities have seen a diverse range of retail formats, from large malls to boutique retail spaces, catering to a wide spectrum of consumer needs.
Real estate consultancy firm, CBRE, reported that the retail sector's performance in 2024 was robust, with a 15% increase in leasing activity compared to the previous year.
The firm attributes this growth to a combination of factors, including improved economic conditions, increased consumer spending, and the introduction of new retail formats.
In Bengaluru, the city's IT and startups ecosystem has played a pivotal role in driving demand for retail spaces.
Tech companies and startups are increasingly investing in creating lifestyle spaces that cater to their employees, leading to a surge in demand for high-quality retail spaces in prime locations.
Similarly, Mumbai and Delhi-NCR have seen a surge in demand for retail spaces, driven by their large and diverse consumer base.
The reopening of tourist destinations in these cities has also contributed to the growth in retail leasing.
Hyderabad, often referred to as the 'Silicon Valley of India,' has seen a steady rise in retail activity, with a focus on tech and lifestyle products.
The city's growing young population and increasing disposable income have been key factors in this trend.
In smaller cities like Chennai, Pune, Kolkata, and Ahmedabad, the retail sector has also shown promising growth.
These cities are witnessing a shift towards modern retail formats, with a focus on providing a seamless shopping experience.
The introduction of new retail concepts and the expansion of e-commerce have been instrumental in driving this change.
The future of the retail sector in India looks promising, with industry experts predicting sustained growth in the coming years.
The key to this growth will be the ability of retailers to adapt to changing consumer preferences and leverage technology to enhance the shopping experience.
In conclusion, the retail leasing market in India has demonstrated significant resilience and growth in 2024, with Bengaluru leading the charge.
The sector's success is a testament to the robustness of the Indian economy and the increasing consumer demand for high-quality retail experiences.
Frequently Asked Questions
Which city topped the list for retail leasing in 2024?
Bengaluru topped the list for retail leasing in 2024, accounting for a significant share of the leasing activity.
What factors contributed to the growth in retail leasing in 2024?
The growth in retail leasing in 2024 was driven by factors such as increasing consumer confidence, investment in e-commerce, the reopening of physical stores post-pandemic, and the introduction of new retail formats.
Which real estate consultancy firm reported the 15% increase in leasing activity?
CBRE, a real estate consultancy firm, reported a 15% increase in retail leasing activity in 2024 compared to the previous year.
How did the tech sector influence the retail market in Bengaluru?
The tech sector in Bengaluru, particularly IT companies and startups, has played a pivotal role in driving demand for retail spaces by creating lifestyle spaces for their employees.
What are the future prospects for the retail sector in India?
The future of the retail sector in India looks promising, with industry experts predicting sustained growth in the coming years, driven by the ability of retailers to adapt to changing consumer preferences and leverage technology.
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