Retail Space Leasing Surges in India's Major Cities

Leasing of retail spaces in Indian shopping malls surged by 15% during April-June 2024, driven by high demand from retailers, especially in major cities. Cushman & Wakefield reported a significant increase in leasing activity across both Grade A malls and high streets, highlighting the dynamic nature of India's retail sector.

Leasing of retail spaces in shopping malls surged by 15% annually during the April-June period, reaching 6.12 lakh square feet in eight major cities, according to Cushman & Wakefield.

Cushman & Wakefield India data indicate a 4% annual increase in demand for retail space on major high streets, totaling nearly 14 lakh square feet in Q2 2024.

Leasing in shopping malls jumped to 6,12,396 square feet from last year's 5,33,078 square feet, while high street locations grew to 13,89,768 square feet from 13,31,705 square feet.

The leasing data encompass various types of shopping malls and prominent high streets in Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, and Ahmedabad.

Saurabh Shatdal, Head Retail and Managing Director, Capital Markets at Cushman & Wakefield, remarked on the robust demand for Grade A malls and high street retail during Q2 2024, underscoring India's vibrant retail landscape.

He mentioned that although high street rental growth increased significantly, the anticipated supply of Grade A malls might stabilize rental costs in the near term. Additionally, the retail sector's shift towards main streets reflects evolving consumer preferences and strong domestic brand performance.

Limited new mall openings and the demand for high-quality retail spaces have led to the dominance of main-street retail leasing. This trend is particularly evident in emerging clusters around residential and commercial hubs across India.

Cushman & Wakefield noted that high street leases constituted 70% of total leases in Q2 2024, compared to 30% for mall leases.

Kolkata, Bengaluru, Hyderabad, and Mumbai witnessed considerable year-on-year rental increases, indicating strong demand for high-street retail.