Retail Space Leasing Trends in Major Indian Cities: A Mixed Bag

Leasing of retail spaces in shopping malls and on high streets in eight major Indian cities fell by 6% in the April-June period, totaling 2.24 million square feet. While shopping malls accounted for 45% of the total, high streets contributed 55%. Future supply is expected to rise later in the year.

Leasing of retail spaces across major Indian cities has experienced a 6% decline in the April-June quarter, reaching 2.24 million square feet, according to data from Cushman & Wakefield. The same period from the previous year saw leases totaling 2.39 million square feet.

Shopping malls were responsible for 45% of the leasing activity, amounting to 1.01 million square feet, while high streets contributed 55%, or 1.23 million square feet. Suvishesh Valsan, Head of Research India at Cushman & Wakefield, noted a decrease in vacancies in premium shopping malls.

Valsan projected optimism for the latter half of the year, expecting nearly 4 million square feet of new Grade A retail spaces in metros like Mumbai, Delhi-NCR, and Hyderabad. Notably, leasing activities varied significantly between cities, with rises in Chennai, Mumbai, and Pune contrasting with declines in others.