 "real estate, construction, rate hike, interest rate hike")
The leasing of retail property in India jumped 24 per cent in the first six months of 2023 compared to the same period last year, a report released on Tuesday said. The total leasing between January and June this year stood at 2.87 million sq ft. It was 2.31 million sq ft last year.
According to real estate consultancy CBRE South Asia's "India Market Monitor Q2 2023", Bangalore, Delhi-NCR, and Ahmedabad collectively accounted for a share of 65 per cent in leasing activity during the first six months this year.
The leasing figures were 15 per cent higher than between July and December last year.
In the quarter that ended on June 30, total leasing stood at 1.3 million sq. ft. The combined share of Bangalore and Delhi-NCR in retail space leasing stood at 59 per cent. During this period, Bangalore emerged as the frontrunner in leasing, capturing a significant 35 per cent share in overall leasing, followed by Delhi-NCR with a 24 per cent share, while Chennai secured a 14 per cent share.
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The leasing activity during the quarter was primarily driven by fashion & apparel, with a 38 per cent share. The food & beverage sector accounted for an 18 per cent share, and both luxury and home & department store sectors held an 11 per cent share.
"We anticipate that secondary leasing will continue to thrive while primary leasing is set to gain momentum, driven by a robust supply pipeline and the approaching festive season. With the likelihood of more international brands entering the market across various categories, we are witnessing growing traction in the luxury segment," said Anshuman Magazine, chairman and chief executive officer (India, South-East Asia, West Asia and Africa), CBRE.
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"Additionally, tier-II cities are expected to gain greater traction as retailers recognize the potential of these markets," added Ram Chandnani, managing director (Advisory & Transactional Services), CBRE India.
Also Read: Retail leasing may rise 17-28% this year to 5-6 mn sq ft in top 8 cities
On the supply front, the January-June period recorded a 148 per cent year-on-year (YoY). The total supply during the period stood at 1.09 million sq ft compared to 0.44 million sq ft last year.
Ahmedabad led the growth in supply addition with a 73 per cent share, followed by Delhi-NCR at 20 per cent.
