Leasing of retail real estate space jumped up by 46% in January-September across the eight cities: CBRE
- IBEF
- October 20, 2023
Due to increased retailer demand, retail space leasing increased by 46% across eight cities during January-September of 2023-24 to 4.73 million square feet, according to CBRE. 3.23 million square feet of retail space was absorbed in the same time frame last year.
The data relates to the consumption of retail real estate space in stand-alone retail properties, prominent high street locations, and shopping malls.
During this period, Bengaluru, Delhi-NCR, and Pune accounted for a combined share of almost 61% in leasing activity among all cities.
According to Mr. Anshuman Magazine, Chairman and Chief Executive Officer of India, South-East Asia, Middle East, and Africa at CBRE,” With the surge in newly available spaces and the onset of the festive season, we anticipate a continued upswing in space utilisation.”
He added that the retailers are eager to revamp the in-store experiences with cutting-edge technology, personalised services, and space optimisation as the industry prepares for a dramatic transition.
The percentage of leasing for the fashion and apparel industry was 34%, for home & department stores it was 17%, and for food and beverage it was 13% during January-September 2023.
Retail space was leased for 0.9 million square feet in Delhi-NCR, 1.4 million square feet in Bengaluru, 0.3 million square feet in Mumbai, 0.5 million square feet in Hyderabad and Chennai combined, 0.6 million square feet in Pune, 0.1 million square feet in Kolkata, and 0.4 million square feet in Ahmedabad.
"Although we expect consumer spending and retail sales to stabilise compared to the unprecedented growth of the previous year, we foresee continued growth in categories such as restaurants, hotels, transport services, vehicle purchases, as well as apparel and footwear," Mr. Anshuman Magazine stated.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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