NEW DELHI: Demand for retail spaces in shopping malls and high-street locations may decline by 15 per cent this year from a record 71 lakh sq ft in the 2023 calendar year, according to CBRE, with retailers being cautiously optimistic.
Leasing of retail spaces in shopping malls and high street locations in eight major cities increased by 48 per cent to 71 lakh (7.1 million) sq ft in 2023, compared to 48 lakh (4.8 million) sq ft during the 2022 calendar year.
Real estate consultant CBRE in its report '2024 India Market Outlook' has estimated that leasing of retail space is expected to be between 6-6%. million (60-65 lakh) sq. ft. in 2024. It also expects a steady supply of retail spaces upon completion of several high-quality mall developments.The consultant said around 5-6 million (50-60 lakh) square feet of investment-grade mall space will become operational in Tier-I cities.
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East Africa, CBRE, said, “Driven by strong consumer demand, India's retail sector is poised for significant growth in 2023. Looking to 2024, retailers and "Consumers are both cautiously optimistic." ,
He said while Tier-I cities remain key expansion hubs, promising Tier-II markets are attracting new players."Malls are transforming into experiential hubs, offering a mix of entertainment, dining and shopping. Driven by pent-up demand and strategic expansion, India's luxury retail is experiencing a leasing boom that will bolster established brands. "The expansion extends beyond Delhi and Mumbai to new markets such as Hyderabad and Ahmedabad," the magazine said.
In 2024, among the retail categories, the home decor segment is likely to expand across online and offline formats, while fashion and apparel players will continue to expand in Tier-I cities with malls and high streets.
Domestic jewelery brands are also expected to continue expanding.Leasing is also likely to accelerate due to increasing consumer interest in the entertainment category.
The report indicated that retailers including anchor tenants and established brands will remain cautious with expansion plans.
"They (retailers) will prioritize locations with high visibility, strong pho traffic and favorable consumer demographics. As a result, I expect rental growth to be rational at both primary and secondary locations," the report said.
Moreover, while well-established domestic brands with solid presence may proceed cautiously with their expansion plans, international newcomers aiming to establish themselves, especially in tier-I cities, are continuing their expansion despite global economic challenges. The strategies are expected to continue.Ram Chandanani, managing director, advisory and transaction services, CBRE India, said, "Foreign luxury retailers are entering India through partnerships with local players. The upcoming launches of some brands underline this trend. This India This reflects a new optimism in the retail sector in the U.S. Investments from leading developers in Tier-I cities, while institutional investors target Tier-I cities, creating a dynamic retail landscape."
Leasing of retail spaces in shopping malls and high street locations in eight major cities increased by 48 per cent to 71 lakh (7.1 million) sq ft in 2023, compared to 48 lakh (4.8 million) sq ft during the 2022 calendar year.
Real estate consultant CBRE in its report '2024 India Market Outlook' has estimated that leasing of retail space is expected to be between 6-6%. million (60-65 lakh) sq. ft. in 2024. It also expects a steady supply of retail spaces upon completion of several high-quality mall developments.The consultant said around 5-6 million (50-60 lakh) square feet of investment-grade mall space will become operational in Tier-I cities.
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East Africa, CBRE, said, “Driven by strong consumer demand, India's retail sector is poised for significant growth in 2023. Looking to 2024, retailers and "Consumers are both cautiously optimistic." ,
He said while Tier-I cities remain key expansion hubs, promising Tier-II markets are attracting new players."Malls are transforming into experiential hubs, offering a mix of entertainment, dining and shopping. Driven by pent-up demand and strategic expansion, India's luxury retail is experiencing a leasing boom that will bolster established brands. "The expansion extends beyond Delhi and Mumbai to new markets such as Hyderabad and Ahmedabad," the magazine said.
In 2024, among the retail categories, the home decor segment is likely to expand across online and offline formats, while fashion and apparel players will continue to expand in Tier-I cities with malls and high streets.
Domestic jewelery brands are also expected to continue expanding.Leasing is also likely to accelerate due to increasing consumer interest in the entertainment category.
The report indicated that retailers including anchor tenants and established brands will remain cautious with expansion plans.
"They (retailers) will prioritize locations with high visibility, strong pho traffic and favorable consumer demographics. As a result, I expect rental growth to be rational at both primary and secondary locations," the report said.
Moreover, while well-established domestic brands with solid presence may proceed cautiously with their expansion plans, international newcomers aiming to establish themselves, especially in tier-I cities, are continuing their expansion despite global economic challenges. The strategies are expected to continue.Ram Chandanani, managing director, advisory and transaction services, CBRE India, said, "Foreign luxury retailers are entering India through partnerships with local players. The upcoming launches of some brands underline this trend. This India This reflects a new optimism in the retail sector in the U.S. Investments from leading developers in Tier-I cities, while institutional investors target Tier-I cities, creating a dynamic retail landscape."
