Retail market update: 2023-Year in review

In 2023, 8.7 million sq ft of gross leasing across retail developments and prominent high streets was recorded in top 7 cities. Bengaluru led the gross leasing with a share of 33%, followed by Delhi NCR with a share of 18% and Mumbai with a share of 17%. Consumer confidence is getting translated into expansion by retailers to increase their store network and sales.

Fashion and Apparel had the highest share of 40% in the total leasing volume. Super Value and Value Fashion segments have witnessed great traction from leading retailers as they are launching their new formats and expanding in this segment. Other categories that contributed majorly were F&B (16%), Entertainment (13%), Home & Furnishing (6%) and Daily Needs & Grocery (5%). 

Key trends:

• Robust retail supply in 2023: A total of 16 retail developments, with a gross leasable area of 6.2 mn sq ft, became operational in 2023, representing a significant increase of 125% year-on-year.

• Increase in average development size: The average size of completed retail developments in 2023 witnessed a 40% increase, rising from 0.28 mn sq ft in 2022 to 0.39 mn sq ft.

• Strengthening institutional play: Institutional funds were involved in 44% (2.7 mn sq ft) of the new supply that became operational in 2023, indicating a growing presence in the retail sector.

• New international brands entering India: In 2023, a total of 14 new international brands established their presence in India, with a majority (8 brands) choosing Mumbai as their entry point, closely followed by Delhi NCR. The food and beverage segment emerged as the top preference.

• Robust future supply: Approximately 41 mn sq ft of retail developments are scheduled to be operational between 2024 and 2028 across India's top seven cities. This pipeline includes projects that are either under construction or in the active planning stage.

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