India retail market trends and dynamics - January to September 2024
Key insights and analysis
- Abhishek Vohra
Indian retail market reported very strong leasing activity across the country’s top seven cities (Mumbai, Delhi NCR, Bengaluru, Kolkata, Chennai, Pune and Hyderabad) during the first nine months (January to September) of 2024. Despite limited new retail space additions of just over 1 million sq ft, the market demonstrated remarkable resilience, with gross leasing reaching an impressive 5.3 million sq ft.
Bengaluru, Delhi NCR, and Mumbai emerged as the frontrunners, collectively accounting for 59% of the total leasing activity. This concentration of demand in major metropolitan areas underscores the continued appeal of prime retail locations to businesses.
Domestic Dominance
Domestic retailers dominate being responsible for 78% of gross leasing during this period. Notably, the rise of Direct-to-Consumer (D2C) brands has contributed significantly to this trend, with these emerging players occupying 0.35 million sq. ft, or about 7% of the total leased area.
International retailers also showed strong interest in the Indian market, leasing over 1 million sq ft across the top seven cities. European, Middle Eastern, and African (EMEA) brands led this segment with a 56% share, followed by American retailers at 23%.
Luxury retail maintained its momentum, with high-end brands securing 0.15 million sq. ft of space. This continued interest from luxury retailers’ signals confidence in the spending power of Indian consumers.
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