Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
India's retail real estate market saw robust growth in H1 2024, with 3.1 million square feet leased across major cities, a 7% increase from last year, as reported by CBRE South Asia. Bengaluru, Chennai, and Delhi-NCR led, accounting for nearly 59% of the total leasing activity. The fashion and apparel sector drove 39% of leasing, while international brands like Charles Tyrwhitt and Maison Margiela expanded their footprint. The addition of 0.5 million square feet in tier-I cities and an anticipated 3-4 million square feet of new space in H2 2024 reflects strong market optimism and growing demand for larger retail spaces.
India's retail real estate market showed significant growth in the first half of 2024, according to CBRE South Asia Pvt. Ltd.'s 'India Retail Figures H1 2024' report. Retail leasing reached a five-year high, with 3.1 million square feet leased across eight major cities, marking a 7% increase from the same period last year. Bengaluru, Chennai, and Delhi-NCR were the top cities, accounting for nearly 59% of the total leasing activity. Advertisement
In H1 2024, Bengaluru led with strong leasing figures, followed by Chennai and Delhi-NCR. The report highlights that investment-grade mall supply is expected to influence future leasing trends, with demand for secondary spaces remaining high in leading malls. The fashion and apparel sector drove the most leasing activity, capturing about 39% of the space, while the entertainment and homeware sectors also contributed significantly.
International brands are expanding their footprint in India. The British luxury brand Charles Tyrwhitt opened its first store in Ahmedabad, while French brands Maison Margiela and Franck Provost entered Mumbai and Bengaluru, respectively. Additionally, Swiss brand Breitling and American brand Michael Kors opened stores in Chennai and Pune. Japanese brands Daiso Japan and ILEM Japan also established a presence in Chennai.
Retail space in tier-I cities saw the addition of 0.5 million square feet in the first half of 2024. The second half of the year is expected to see the opening of new investment-grade malls in cities such as Bengaluru, Hyderabad, and Mumbai, adding an estimated 3 to 4 million square feet of retail space. Tier-II cities like Indore and Kochi showed strong performance, with a combined space take-up of 0.4 million square feet.
The April-June 2024 quarter alone saw 1.2 million square feet of retail space leased. Hyderabad, Chennai, and Delhi-NCR accounted for 54% of this leasing. The domestic retail sector led with 76% of leasing activity, while international retailers from EMEA, the US, and APAC regions contributed 12%, 7%, and 5%, respectively.
Trends indicate growing demand for larger retail spaces driven by segments like jewellery, mid-range fashion, and gaming centres. Millennials and Gen Z are particularly driving the growth of mid-range fashion brands and gaming venues, leading to larger store formats.
The direct-to-consumer (D2C) sector is also expanding rapidly, spurred by increased e-commerce and improved logistics. Many D2C brands are now considering physical stores to enhance their multi-channel presence. Developers are exploring opportunities with successful D2C brands to integrate online and offline shopping experiences.
Transit retail is set for considerable growth due to ongoing infrastructure projects and rising passenger traffic. India's plan to expand its airport infrastructure to 300 airports by 2047 suggests substantial potential for retail at transit hubs, including airports, metros, and bus stations.
Overall, India's retail sector is witnessing dynamic changes with increased foreign investment, growing domestic demand, and expanding infrastructure, positioning it for a promising future.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
