Demand for retail spaces in malls, high streets falls 10% in 2024: CBRE

Leasing of retail spaces in shopping malls and high streets fell 10 per cent last year to 64 lakh square feet across eight major cities due to supply constraints, according to CBRE.

The gross absorption or leasing of retail spaces stood at 71 lakh square feet in 2023 calendar year.

Real estate consultant CBRE data pertains to leasing in investment-grade shopping malls, high streets and standalone developments.

"India's retail landscape is set for significant growth in 2025, with primary leasing demand gaining momentum and 5-6 million (50-60 lakh) sq ft of Grade A malls expected to commence operations in cities such as Delhi-NCR, Hyderabad, Mumbai, and Bengaluru," Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said.

Leasing activity is anticipated to remain steady, supported by a robust supply pipeline and strong demand from mid-range fashion, value fashion, athleisure, and jewellery segments, he added.

"Retail spaces are evolving into destinations for emotional engagement and storytelling. Retail spaces are transforming into destinations offering a seamless mix of shopping, dining, and entertainment, ensuring a holistic experience for consumers," Magazine observed.

With innovative approaches like social media engagement, quick commerce, and advanced inventory management, he said, India's retail sector is poised for a dynamic and transformative year ahead.

As per the data, the leasing of retail spaces in Delhi-NCR fell to 10 lakh sq ft last year from 14 lakh square feet in 2023.

In Bengaluru, the absorption of retail space remained flat at 19 lakh square feet.

Leasing of retail spaces in Mumbai dipped to 8 lakh square feet from 10 lakh square feet.

Hyderabad saw a rise in demand to 10 lakh square feet from 7 lakh square feet.

Chennai too witnessed a marginal rise in demand to 7 lakh square feet from 6 lakh square feet.

However, Pune saw a decline in leasing of retail spaces to 6 lakh square feet from 8 lakh square feet.

In Kolkata, there was a rise to 2 lakh square feet from 1 lakh square feet.

Leasing of retail spaces in Ahmedabad fell to 4 lakh square feet in 2024 from 5 lakh square feet in the preceding year.