Malls and mainstreets both contributed to the strong 55 per cent increase in leasing activity in India’s retail sector, which saw leasing activity in the country’s top eight cities reach 2.4 million square feet (MSF) in the January-March quarter of this year, said a report.
According to the Cushman & Wakefield report, the start of new supply in developing areas was the reason for this growth in both malls and mainstreets. Hyderabad led the way in leasing volume, accounting for 34 per cent (0.8 MSF) of all leasing activity, with an astounding 106 per cent year-over-year increase, according to the research.
Mumbai came in second, said the report, making up 24 per cent (0.58 MSF) of the overall lease volume and growing by 259 percent annually, mostly as a result of the opening of new high street locations and the addition of additional mall supply.
Due to robust demand in important submarkets and a 57 per cent year-over-year rise, Delhi-NCR also witnessed notable traction, gaining 17 per cent (0.41 MSF) of the overall lease share.
Chennai and Bengaluru, on the other hand, showed steady growth figures with leases of 0.17 and 0.19 MSF, respectively.
Retailers’ interest in premium high street locations in Delhi NCR, Mumbai, Bengaluru, and Hyderabad has increased, according to the research, which also noted that mainstreets continue to dominate the leasing landscape, making up two-thirds of the overall lease volume at 1.69 MSF.
Fashion and F&B were most common on main streets throughout the top 8 cities with 0.80 MSF of leasing volume, while entertainment and fashion were the largest space consumers in malls, accounting for 34 per cent of the leasing share at 0.35 MSF, according to the report.
Furthermore, domestic brands generated over 92 per cent of leasing activity, demonstrating the strength of the domestic retail boom, while overseas brands accounted for about 8 per cent of transaction volumes to participate in India’s increasing consumer story.
According to the report, mall leasing activity is anticipated to increase further in the future, with about 6.4 million square feet of new mall supply anticipated in the top 8 cities by the end of 2025, of which 58 per cent will be Grade A+.
