CBRE South Asia recently published the report India Retail Figures H1 2024, which highlights significant growth in Mumbai’s retail leasing market. From January to June 2024, Mumbai saw a 42% increase in retail leasing year-on-year across malls and high streets, reaching a total of 0.3 million square feet, up from 0.2 million square feet in the same period last year. The report, which focuses on real estate growth and trends in India's retail sector, indicates that fashion and apparel led tenant sectors in Mumbai with a 46% share, followed by food & beverage at 12%, and luxury at 5%.
Key Lease Transactions in Mumbai
- Intune: 10,000 sq ft at Sunrise Plaza Vasai (High Street)
- Zudio: 9,700 sq ft at Shiv Solitaire – Jogeshwari (High Street)
- Fresh Signature: 9,000 sq ft at Infiniti Mall, Andheri
Pan India Retail Leasing Trends
The report states that retail leasing across India reached a five-year high in H1 2024, totalling 3.1 million square feet across eight cities, compared to previous five-year H1 periods. Year-on-year, retail leasing grew by 7%, from 2.9 million square feet in H1 2023 to 3.1 million square feet in H1 2024. Bengaluru led the absorption, followed by Chennai and Delhi-NCR, which together accounted for nearly 59% of the total leasing. Investment-grade mall supply is expected to drive primary leasing trends in the coming quarters, with strong demand continuing in leading malls across key cities.
Also Read: Mumbai records 3rd highest property price rise globally in Q1 2024: Report
Sector Insights
Fashion and apparel dominated H1 2024 with a 39% share, driven by mid-range, value fashion, and athleisure brands. The entertainment sector contributed 13%, and homeware and department stores added 11% to the leasing activity.
Retail Leasing Figures (in million square feet)
- Delhi-NCR: 0.4 (Jan-Jun’24) vs. 0.7 (Jan-Jun’23)
- Bengaluru: 1.0 (Jan-Jun’24) vs. 0.8 (Jan-Jun’23)
- Mumbai: 0.3 (Jan-Jun’24) vs. 0.2 (Jan-Jun’23)
- Hyderabad: 0.4 (Jan-Jun’24) vs. 0.2 (Jan-Jun’23)
- Chennai: 0.4 (Jan-Jun’24) vs. 0.4 (Jan-Jun’23)
- Pune: 0.3 (Jan-Jun’24) vs. 0.1 (Jan-Jun’23)
- Kolkata: 0.1 (Jan-Jun’24) vs. 0.1 (Jan-Jun’23)
- Ahmedabad: 0.2 (Jan-Jun’24) vs. 0.4 (Jan-Jun’23)
Foreign Retailer Presence
India's retail sector continues to attract foreign retailers. The UK’s men’s luxury fashion brand Charles Tyrwhitt opened its first store in Ahmedabad, while French brands Maison Margiela and Franck Provost debuted in Mumbai and Bengaluru, respectively. Swiss luxury watch brand Breitling and American luxury fashion brand Michael Kors opened stores in Chennai and Pune. Japanese brands Daiso Japan and ILEM Japan also expanded to Chennai.
Future Outlook
In the first half of 2024, about 0.5 million square feet of retail space was added across tier-1 cities. The second half of 2024 is expected to see an increase in supply, with new investment-grade malls set to begin operations in cities like Bengaluru, Hyderabad, and Mumbai, potentially adding 3-4 million square feet of retail space.
Key Cities Leading Absorption (Jan-Jun '24)
- Bengaluru: 34%
- Chennai: 13%
- Delhi-NCR: 12%
- Hyderabad: 12%
Tier-2 Cities
Tier-2 cities such as Chandigarh, Jaipur, Lucknow, Indore, and Kochi saw a combined space take-up of 0.4 million square feet in H1 2024. Indore and Kochi dominated with a 56% share, while Lucknow and Chandigarh each accounted for 17%.
Q2 2024 Leasing Activity
In Q2 2024, total leasing stood at 1.2 million square feet. Hyderabad, Chennai, and Delhi-NCR had a combined share of 54%. Fashion & apparel led the leasing activity with a 38% share, followed by homeware and department stores (16%), entertainment (15%), food & beverage (9%), and consumer electronics (6%). Domestic firms accounted for 76% of the leasing activity, followed by EMEA (12%), American (7%), and APAC (5%) retailers.
Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, commented, “Retail absorption increased in the first half of the year on an annualized basis. The ongoing introduction of quality supply is expected to continue stimulating an uptick in overall space take-up in the coming quarters. Ongoing infrastructure development and rising passenger traffic present significant opportunities for nationwide transit retail expansion.”
Ram Chandnani, managing director, advisory & transactions services, CBRE India, noted, “Steady retail leasing activity was witnessed in Q2 2024 on a quarterly basis. However, the ongoing introduction of quality supply is expected to continue stimulating an uptick in overall space absorption in the coming quarters. A growing number of direct-to-consumer (D2C) brands are recognising the importance of establishing a physical presence to complement their online operations. Developers are closely monitoring these brands with robust online customer bases and exploring opportunities to integrate them into physical retail formats.
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