Leasing activity by retailers in organized retail centers and key high streets across the top seven cities in India surged by over 100 percent in the second quarter (Q2) of 2024, according to a report by real estate firm JLL.
Despite a recent slowdown in consumption growth for some discretionary retail categories, retailers have strategically responded by closing unviable stores and expanding into new markets, the report highlighted.
Leasing activity rose to 2.2 million sq. ft., marking a significant 100 percent increase compared to the previous quarter. This resulted in a robust 3.3 million sq. ft. of cumulative leasing transactions in the first half (H1) of 2024.
JLL attributes this surge to retailers securing leases in newly completed Grade A projects launched by established developers, as well as expanding into organized high streets and evolving catchments.
The fashion and apparel segment, particularly in the value and super value categories, led the leasing activity in 2024, capturing the highest share at 38 percent. The mid-segment dominated this category, accounting for 56 percent of the activity. Additionally, the F&B and entertainment segments together represented approximately 30 percent of the leasing volume in H1 2024, transforming shopping malls into vibrant social and entertainment hubs.
Highlighting factors such as positive demographics, a stable economy, and timely project completions, the JLL report anticipates a strong outlook for India’s retail segment.
“The first half of 2024 saw domestic brands taking the lead in the retail market, accounting for an impressive 80 percent of the gross leasing. Among international brands, Europe, the Middle East, and Africa (EMEA)-based retailers dominated gross leasing with more than 50 percent of the share, while the Americas accounted for 27 percent and APAC for 21 percent,” said Samantak Das, Chief Economist and Head of Research & REIS, India, at JLL.
“Additionally, India’s appeal as a retail destination was strengthened with the opening of nine international brands’ maiden stores, primarily focusing on expansion in Delhi NCR and Mumbai,” Das added.
(With ANI Inputs)
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