Pan-India retail leasing rises 24% YoY in H1 2023: CBRE report

The period also marked a 148 per cent YoY increase in supply, reaching 1.09 million square feet. Ahmedabad led supply addition growth with a 73 per cent share, followed by Delhi-NCR at 20 per cent.

During the first half of 2023, retail leasing in Delhi-NCR increased by 65 per cent YoY, with fashion and apparel players driving leasing at 47 per cent, followed by luxury at 13 per cent. The total leasing stood at 0.70 million square feet compared to 0.42 million square feet in the corresponding period last year. The city also recorded a supply of 0.22 million square feet, according to CBRE’s ‘India Retail figures H1 2023’ report.

Recognising the potential of the consumer market, international brands such as European luxury brand Balenciaga are set to establish their presence in India. Galeries Lafayette, a leading Parisian shopping centre, plans to open two stores in Mumbai and Delhi-NCR in collaboration with Aditya Birla Fashion and Retail Ltd.

The report also highlighted key trends shaping up in 2023. Retailers are likely to explore new stores in secondary locations, considering cost-sensitive opportunities. The retail equation now prioritises experience, leisure, and customer-centric strategies. Brands are focusing on immersive in-store experiences as a response to e-commerce, optimising their physical presence.

Furthermore, retailers are reassigning a more active supply chain role to their brick-and-mortar stores to hedge against rising transportation costs. The final 50 feet remains a significant concern in the logistics journey.

Retailers will continue to explore tier II, III and IV markets. Factors like increased spending potential, smart city recognition, developing infrastructure, and successful brand launches are driving preference for these markets. India’s transition into an organised retail market will be propelled by growth in these cities, making it vital for stakeholders to harness their economic potential, the report added.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East, and Africa, CBRE, said: “Despite global headwinds and looming uncertainty, India is poised for strong economic growth and sustained recovery during the endemic stage. Retailers have expressed positive leasing sentiments, indicating their strong interest in establishing new setups, expanding operations, and upgrading existing stores.

"Going forward, the anticipated growth in mall supply coupled with encouraging consumer spending trends, especially during the festive season, is expected to further augment the sentiment for expansion among both international and domestic retailers who are well positioned in the market.”

Fibre2Fashion News Desk (DP)