Real estate consultant Cushman & Wakefield has reported that between July and September, leasing of retail space in shopping malls and well-known high streets fell 1 per cent to 1.63 million square feet across the top eight cities. Cushman & Wakefield published its Q3-2024 ‘Retail MarketBeat’ report, highlighting a consistent trend in India’s main streets that led to retail growth in the country’s top eight cities.
“With an astounding 68 per cent of the 1.6 million square feet rented this quarter, main streets dominated the leasing scene,” according to the consultancy. Rental rates have increased by up to 15 per cent annually in Delhi-NCR, Bengaluru, Chennai, and Kolkata, especially due to strong demand on key streets.
Cushman & Wakefield’s Head of Retail and Managing Director of Capital Markets, Saurabh Shatdal, stated, “The retail industry in India is changing quickly, and due to limited mall supply, main streets continue to see high leasing rates”
Fashion and accessories are among the sectors that lead the retail leasing trends, which show a distinct change towards increased discretionary spending and the changing lifestyles of Indian customers, according to Shatdal.
Data shows that retail leasing in Bengaluru increased from Rs 0.18 million to Rs 0.20 million, a 9 per cent increase. Chennai saw a 33 per cent decrease in retail space leasing, from 0.23 million square feet to 0.15 million square feet.
Delhi-NCR also saw a 39 per cent decline, going from 0.45 million square feet to 0.27 million square feet. At about 0.05 million square feet, Kolkata’s demand for retail space stayed essentially unchanged. Retail space leasing in Mumbai increased by 74 per cent, from 0.13 million to 0.22 million square feet.
According to experts, the demand for contemporary, well-located retail spaces is rising in order to meet changing consumer demands, since urbanisation is predicted to reach over 40 per cent by 2030. The leasing operations also demonstrate the lasting value of physical stores in offering distinctive, immersive shopping experiences that internet platforms cannot match, even as e-commerce keeps expanding.
