Retail Sector Sees Unprecedented Growth in First Half of 2024
India's retail sector witnesses strongest H1 leasing in 5 years, with 3.1 mn sq. ft. of retail space leased across 8 cities.
Retail SectorReal EstateLeasingIndiaMarket TrendsReal Estate MumbaiJul 30, 2024
The report highlights that retail leasing witnessed a growth of 7% year-over-year (Y-o-Y) in H1 2024, with Bengaluru, Chennai, and Delhi-NCR accounting for nearly 59% of the total leasing. The strong demand for fashion and apparel products continued in H1 2024, with mid-range, value fashion, and athleisure brands leading the way.
Several international brands, including Charles Tyrwhitt, Maison Margiela, and Franck Provost, entered the Indian market in H1 2024, opening their first stores in Ahmedabad, Mumbai, and Bengaluru, respectively. Other notable expansions include the opening of stores by international brands such as Breitling, Michael Kors, Daiso Japan, and ILEM Japan in Chennai and Pune.
The report also highlights that tier-II cities, including Chandigarh, Jaipur, Lucknow, Indore, and Kochi, witnessed an overall space take-up of 0.4 million sq. ft. in H1 2024, with Indore and Kochi accounting for a joint share of 56%.
In the coming quarters, the influx of investment-grade mall supply is expected to influence primary leasing trends, while leading malls across key cities will continue to witness strong demand for secondary spaces. The increasing demand from tier-II and III cities, coupled with the rise of e-commerce platforms, is further enhancing the accessibility and popularity of luxury products nationwide.
Information CBRE South Asia Pvt. Ltd. is India's leading real estate consulting firm, providing a range of services including transaction advisory, capital markets, and consulting.
CBRE South Asia Pvt. Ltd. is a leading international property consultancy and a subsidiary of CBRE Group, Inc., a Fortune 500 and S&P 500 company headquartered in Los Angeles, USA.
Frequently Asked Questions
What was the total retail space leased in H1 2024?
3.1 million square feet
Which cities accounted for nearly 59% of the total leasing in H1 2024?
Bengaluru, Chennai, and Delhi-NCR
What is driving the growth of the retail sector in India?
Increasing demand from tier-II and III cities, rise of e-commerce platforms, and growth of luxury goods
Which international brands entered the Indian market in H1 2024?
Charles Tyrwhitt, Maison Margiela, Franck Provost, Breitling, Michael Kors, Daiso Japan, and ILEM Japan
What is expected to influence primary leasing trends in the coming quarters?
Influx of investment-grade mall supply
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