Real estate demand firm, retail leasing up by 130% YoY: CBRE Report

Retail sector leasing grew by 130 per cent YoY to reach 1.5 million square feet in Jan-March 2023, according to a report by Coldwell Banker Richard Ellis (CBRE), an American real estate firm.

 

The report titled 'India Market Monitor - Q1 2023' found that growth was most notable in Ahmedabad, Delhi-NCR, Bangalore, and Chennai.

The report stated that the fashion and apparel segment had a share of 31 per cent in the leasing sector, which was followed by Homeware and Department stores at 19 per cent.

Talking about real-estate in the residential sector, the report said that the sector is likely to maintain its momentum in terms of sales and launch activity.

The report said that a jump of 12 per cent was registered in housing sales in Q1 2023. With 43 per cent and 27 per cent shares in the mid-end and high-end residential real-estate, these two categories dominated the space.

High-ticket projects that cost Rs 1.5 crore or more would continue to see high-demand. The impact of rising home loan interest rates is likely to be limited, the report said.

Anshuman Magazine, Chairman and CEO - India, CBRE, said, "Retail supply this year is expected to surpass 2022 levels owing to pent-up supply addition, with several investment-grade projects launched in the past two years set to become operational in 2023. This would give a fillip to primary leasing, which is likely to be the main demand driver for retail space in 2023.”