India’s luxretail space leasing to dip by 15% in 2024: CBRE

India’s retail space leasing across shopping mall and hi-street locations is likely to dip by 15 per cent to 6-6.5 million sq ft in 2024, as per real estate consultant CBRE.

Supply of retail spaces, particularly development of high-quality malls, is expected to remain steady in 2024 with Tier I cities expected to witness approximately 5-6 million sq ft of investment-grade mall space during the year. In 2023, India’s retail space leasing grew to 71 lakh sq ft across major cities, according to the CBRE report titled ‘2024 India Market Outlook.’

Anshuman Magazine, Chairman & CEO, CBRE - India, South-East Asia, Middle East & Africa, avers, besides Tier I cities, Tier II markets are also expected to attract new mall developers during the year. Malls are likely to be expanded into experiential centers with entertainment, dining, and shopping facilities to meet consumer demands.

Leasing across luxury retail will increase during the year with both established brands deepening their presence and new international players entering the market. This expansion will extend beyond traditional hubs like Delhi and Mumbai to emerging markets such as Hyderabad and Ahmedabad.

In 2024, retailers, including anchor tenants and established brands, are expected to prioritise locations with high visibility, foot traffic, and favorable demographics for leasing. Growth in rents is anticipated to stabilise across primary and secondary locations.