Retail

Retail leasing in India grows by 21% YoY to touch 4.7 mn sq ft in 2022

18 Feb '23

2 min read

Pic: Shutterstock

Backed by sustained discretionary spend and rebound in brick-and-mortar sales after the pandemic, retail consumption in India continued to strengthen last year, leading to expansionary space take-up by domestic and international retailers. Retail leasing grew in the country by 21 per cent year on year (YoY) to touch 4.7 million sq ft last year.

In the second half (H2) last year, it stood at 2.43 million sq ft—up by 5 per cent on a half-yearly basis and down by 19 per cent YoY, according to a survey by CBRE India.

Bangalore and Delhi-National Capital Region together accounted for more than 60 per cent of the annual and half-yearly leasing activity. Fashion and apparel players led both the annual and half-yearly space take-up.

Close to 1.45 million sq ft of supply became operational during the year, down by 57 per cent YoY.

However, in H2 2022, supply addition improved by 129 per cent on a half-yearly basis to almost 1.01 million sq ft. Bangalore and Pune were the two main contributors to supply addition during the year.

More than 70 per cent of retailers in India stated that they plan to expand operations this year.

Despite global headwinds, international brands like Tim Horton’s, Victoria’s Secret and Uniqlo continued to expand in India during H2 2022. Tier-II cities continued to be popular.

Fibre2Fashion News Desk (DS)

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