India Retail Market Dynamics H1 2024
Surge in retail leasing despite consumption challenges
- Shweta Kakkar
- Abhishek Vohra
In Q2 of calendar year 2024, the leasing activity by retailers in organised retail centers and key high streets across the top seven cities experienced a surge. While certain discretionary retail categories have faced a slowdown in consumption growth in recent quarters, retailers have responded by closing unviable stores and implementing cost rationalization measures. There has been positive momentum in leasing during Q22024 as brands continue to expand strategically in newer micro markets and launched new formats specially in the value fashion segment.
Note: *Retail developments comprises operational shopping malls and prominent organized retail centres
**Stock signifies area of total operational/existing retail centres
The data pertains to top 7 cities (Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and Pune)
mn sq ft signifies million square feet
Leasing activity rose to 2.2 million sq. ft, exhibiting a remarkable 100% increase compared to the previous quarter (Q12024). This positive momentum translated into a robust H12024, resulting in an impressive cumulative leasing transaction of 3.3 million sq. ft.
The surge in leasing activity can also be attributed to retailers proactively securing leases in newly completed Grade A projects that were launched by established developers and institutional owners during last year. In addition, retailers also secured spaces in leading organized high streets.
Notably, the F&B and entertainment segments combined accounted for approximately 30% of the leasing volume in H1 2024, highlighting the growing significance of these categories in retail destinations. These categories are transforming shopping malls into vibrant and captivating spaces that go beyond mere shopping experiences. It is seen that developers have started dedicating a larger portion of their spaces to F&B and entertainment. The goal is to create an engaging and immersive environment that stimulates place-making in retail developments.
For more insights, download the report.
