CBRE South Asia, the actual property consulting agency, just lately introduced the findings of its newest report, ‘India Market Monitor Q3 2023’. The report highlighted the expansion tendencies and dynamics throughout the actual property sector in India. In phrases of cities, Bangalore, Delhi-NCR, and Pune collectively accounted for a share of over 61% in leasing exercise throughout this era.
According to the report, retail sector leasing witnessed 46% Y-o-Y development within the Jan-Sep’23 interval. The complete absorption throughout the highest 8 Indian cities stood at 4.73 mn. sq. ft, in comparison with 3.23 mn. sq. ft. in Jan-Sep ’22. Fashion & attire and residential & malls accounted for over 50% share in leasing.
Supply addition additionally recorded a 577% Y-o-Y improve in Jan-Sep ’23, crossing 2.98 mn. sq. ft.
During the 9-month interval (Jan-Sep ’23), the style and attire sector’s share in leasing stood at 34%, residence & malls at 17%, and meals and beverage at 13%.
Delhi-NCR, Chennai and Pune led leasing exercise within the style & attire class, whereas residence & division retailer leasing was highest in Pune, Ahmedabad, and Mumbai.
Bangalore recorded the best leasing share of 30% in the course of the Jan-Sep’23 interval, adopted by Delhi-NCR at 19%, Pune at 12% and Chennai at 11%.
During the Jul-Sep’23 quarter, complete leasing stood at 1.84 mn. sq. ft. The mixed share of Bangalore and Pune in retail area leasing stood at 59%.
Bangalore emerged because the frontrunner in leasing, capturing a major 35% share, adopted by Pune with a 24% share and Hyderabad with a 14% share.
Delhi NCR additionally had a 11% share in complete leasing throughout this era. Fashion & attire manufacturers led leasing exercise with a 33% share within the complete leasing within the high 8 cities throughout Jul-Sep ’23, whereas leasing by homeware and malls accounted for 22% share in complete leasing.
During Jul-Sep’23, the highest 8 cities additionally noticed a 100% Y-o-Y development in mall completions. Pune led the expansion in provide addition with a 58% share, adopted by Delhi-NCR at 19%.
During this era, the share of leasing exercise was led by home corporations (68%), adopted by retailers from EMEA (22%), APAC (8%), and America (3%).
Anshuman Magazine, chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE, mentioned, “As we step into the last quarter of the year, we are delighted to witness the remarkable growth in retail absorption and supply addition. With the surge in newly available spaces and the onset of the festive season, we anticipate a continued upswing in space utilisation. The retail sector is on the brink of a remarkable transformation, where retailers are keen on revamping the in-store experiences with cutting-edge technology, personalised services, and space optimisation.”
“Although we expect consumer spending and retail sales to stabilise compared to the unprecedented growth of the previous year, we foresee continued growth in categories such as restaurants, hotels, transportation services, vehicle purchases, as well as apparel and footwear.”
Ram Chandnani, MD, advisory & transactions companies, CBRE India, mentioned, “As construction costs continue to challenge the industry, we anticipate a surge in redeveloping and reimagining existing spaces, particularly in prime locations with strong occupancies and rents. With malls becoming entertainment centres, footfalls in brick-and-mortar stores are expected to continue rising. Secondary leasing in the retail sector is also expected to remain strong and primary leasing is likely to continue gaining momentum, given the strong supply pipeline and the festive season.”
“Additionally, we foresee tier-II cities gaining momentum as retailers seize the opportunity to enter these promising markets, capitalising on their potential for growth while managing operational costs. This strategic move allows them to enhance brand presence, foster customer engagement, and offer value through in-person shopping experiences.”
