22 March 2023, Mumbai
Fashion and apparel brands led the retail leasing activity in India from July to December 2022, according to a report by CBRE South Asia.
The research, titled "India Retail Figures H2 2022," found that multinational companies are increasingly renting out retail space, indicating a shift in consumer tastes towards traditional storefronts. Despite the growth of online shopping, demand for retail and commercial space continues to rise, leading to a surge in the construction of buildings designed to house both retail and office occupants.
The report identified Delhi-NCR and Bangalore as the top two regions for leasing activity, with the amount of retail space leased each year increasing by 21% from 2021 to 2022, adding 4.7 million square feet. Fashion and apparel brands accounted for about 42% of all leasing during this period, while food and drink, hypermarket, and entertainment stores saw increased demand in 2018.
The study found that over 60% of international retail brands have increased their regional presence, serving new client verticals in both metro and non-metro areas.
Experts commented that the growth trajectory of mall developers in the Delhi NCR region has been robust, supported by increased leasing activity. The festive season during the latter half of 2022 was also a significant driver of positive consumer sentiment, which encouraged retail brands to expand their footprint across Delhi-NCR.
The rise in demand for retail and commercial space in the region has led to a 4–8% increase in rent in some parts of Delhi-NCR and Bangalore.
