India's retail sector boasts 46% YoY growth in leasing for 9 months of 2023


03 November 2023, Mumbai

WHY India

India's retail sector has seen remarkable growth in the first nine months of 2023, with a 46% year-on-year increase in leasing activity, according to a report by CBRE, a leading commercial real estate services company.

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This growth is particularly evident in the eight major cities of Bengaluru, Delhi-NCR, Pune, Hyderabad, Chennai, Mumbai, Kolkata, and Ahmedabad, which together accounted for 4.73 million sq. ft. of retail leasing in the first nine months of 2023, compared to 3.23 million sq. ft. in the same period last year.

  • The report, titled 'India Market Monitor Q3 2023', attributes this surge in demand for premium retail spaces to various factors, including:

    • Fast urbanization
    • Rising disposable income
    • The lasting appeal of offline retail
    • Investments in retail infrastructure by both public and private sectors

    The report also highlights the following trends in the retail market:

    • The first half of 2023 recorded a significant year-on-year growth of nearly 24% in retail leasing, while the same period of 2022 saw a negligible growth.
    • The fashion and apparel segment dominated the retail leasing with a 34% growth, followed by home furnishing and department stores with 17%, and food and beverage with 13%.
    • Bengaluru, Delhi-NCR, and Pune were the top performers in the real estate market, accounting for more than 61% of the share in various leasing activities. Pune led the growth with a 58% increase in supply additions, followed by Delhi-NCR with 19%. Many of the top eight cities witnessed a year-on-year growth of almost 100% in the completion of malls and shopping centers.
    • Delhi-NCR also experienced a boost in retail activities, especially after hosting the recent G20 summit.
    • Domestic firms were the main drivers of leasing activity, representing about 68% of the market, followed by retailers from Europe, the Middle East, and Africa (EMEA) with 22%.


    The Indian retail sector is poised for continued growth in the coming years, driven by urbanization, rising disposable incomes, and the growing popularity of e-commerce.

    The establishment of mega textile hubs and other government initiatives are likely to further boost the sector's growth. This growth will create new opportunities for investors, retailers, and consumers alike.

    5 key insights :

    • Strong retail growth: 46% YoY leasing growth in first 9 months of 2023
    • Key drivers: Urbanization, rising incomes, offline retail appeal
    • Top cities: Bengaluru, Delhi-NCR, Pune
    • Dominant segment: Fashion and apparel (34% growth)
    • Domestic firms lead: Account for 68% of leasing activity

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