New Delhi, Leasing of commercial spaces in malls rose 15 per cent year-on-year during the April-June period to 6.12 lakh sq ft across eight major cities due to improved demand from retailers, according to Cushman & Wakefield.
Data from real estate consultancy Cushman & Wakefield India showed that demand for commercial space on high streets in these eight major cities rose 4 per cent year-on-year to nearly 14 lakh sq ft during the second quarter of calendar year 2024.
According to the data, leasing activities in shopping malls increased to 6,12,396 sq ft during April-June 2024 from 5,33,078 sq ft in the year-ago period.
Main street locations saw 4 per cent growth in leasing to 13,89,768 sq ft from 13,31,705 sq ft during the period analyzed.
The leasing data includes all types of shopping centers (Grade A and Grade B) and also all major high streets. These eight cities are: Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad.
Commenting on the report, Saurabh Shatdal, retail director and managing director of capital markets at Cushman & Wakefield, said: "The second quarter of 2024 was marked by strong demand for both Grade A shopping centers and retail. The Growth in both formats underlines the vitality of India's retail landscape."
While rental growth on high streets has seen a notable rise, the upcoming 4.5 million (45 lakh) sq ft Grade A shopping center supply could stabilize rental costs in the short to medium term to as supply and demand dynamics change to some extent, he added.
"However, we anticipate high street activity to remain healthy. In addition, the dominance of national brands, which account for 53 per cent of leasing volume, along with the strong performance of fashion and F&B (food and beverage ) highlight the evolution of retail preferences in India," Shatdal said.
The consultant highlighted the continued dominance of high street retail leasing, due to limited new shopping center openings and strong demand for high-quality retail space.
Retailers are increasingly focusing on high streets in prominent locations across India, and emerging clusters are forming around residential and commercial centres, he added.
"This trend is reflected in leasing activity: high street leases accounted for 70 percent of total leases in the second quarter (April-June) 2024, compared to 30 percent for shopping center leases. "C&W said.
Rental growth on prominent high streets in Q2 2024 further underlines their growing appeal.
Kolkata, Bengaluru, Hyderabad and Mumbai have seen significant year-on-year increases in rents, demonstrating strong demand and potential for retail on the country's high streets.
Data from real estate consultancy Cushman & Wakefield India showed that demand for commercial space on high streets in these eight major cities rose 4 per cent year-on-year to nearly 14 lakh sq ft during the second quarter of calendar year 2024.
According to the data, leasing activities in shopping malls increased to 6,12,396 sq ft during April-June 2024 from 5,33,078 sq ft in the year-ago period.
Main street locations saw 4 per cent growth in leasing to 13,89,768 sq ft from 13,31,705 sq ft during the period analyzed.
The leasing data includes all types of shopping centers (Grade A and Grade B) and also all major high streets. These eight cities are: Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad.
Commenting on the report, Saurabh Shatdal, retail director and managing director of capital markets at Cushman & Wakefield, said: "The second quarter of 2024 was marked by strong demand for both Grade A shopping centers and retail. The Growth in both formats underlines the vitality of India's retail landscape."
While rental growth on high streets has seen a notable rise, the upcoming 4.5 million (45 lakh) sq ft Grade A shopping center supply could stabilize rental costs in the short to medium term to as supply and demand dynamics change to some extent, he added.
"However, we anticipate high street activity to remain healthy. In addition, the dominance of national brands, which account for 53 per cent of leasing volume, along with the strong performance of fashion and F&B (food and beverage ) highlight the evolution of retail preferences in India," Shatdal said.
The consultant highlighted the continued dominance of high street retail leasing, due to limited new shopping center openings and strong demand for high-quality retail space.
Retailers are increasingly focusing on high streets in prominent locations across India, and emerging clusters are forming around residential and commercial centres, he added.
"This trend is reflected in leasing activity: high street leases accounted for 70 percent of total leases in the second quarter (April-June) 2024, compared to 30 percent for shopping center leases. "C&W said.
Rental growth on prominent high streets in Q2 2024 further underlines their growing appeal.
Kolkata, Bengaluru, Hyderabad and Mumbai have seen significant year-on-year increases in rents, demonstrating strong demand and potential for retail on the country's high streets.
