The retail real estate market in India has seen a 5% increase in leasing activity during the first nine months of 2024, according to a new report from Cushman & Wakefield. The report highlights the leasing of Grade-A malls and prominent high streets across the top eight cities, with a total absorption of 5.53 million square feet, up from 5.29 million square feet in the same period in 2023. These cities include Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, and Ahmedabad.

Strong Retail Sector Performance

Saurabh Shatdal, Managing Director of Capital Markets and Head-Retail-India at Cushman & Wakefield, attributed the growth to the continued strength of India's retail sector, with increasing discretionary spending and shifting consumer preferences driving demand for premium retail spaces. While mall leasing slightly decreased, high street retail leasing witnessed a notable uptick, accounting for 3.82 million square feet, up from 3.44 million square feet last year.

In contrast, mall leasing activity declined marginally to 1.72 million square feet compared to 1.85 million square feet during the same period in 2023. Despite this, the overall retail leasing market is on a recovery trajectory, with the shift towards more dynamic and experiential spaces becoming apparent post-pandemic.

Hyderabad's Retail Space Surge

One of the standout performers in the market has been Hyderabad, where high-street retail space leasing surged by nearly 7.5%, reaching 1.72 million square feet in 2024, up from 1.60 million square feet last year. This reflects a strong demand for prime retail locations in the city, which is quickly becoming a key hub for retail expansion.

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The Evolving Retail Landscape

As consumer behavior continues to evolve post-pandemic, there is an increasing preference for retail destinations that blend traditional shopping needs with community engagement and experiential elements. According to Akash Nagpal, VP of Leasing at Trehan Iris, there is a clear demand for such spaces that offer more than just products — they are becoming destinations for social interaction and unique experiences.

Need for More Retail Development

Despite the robust growth, experts like Shatdal emphasize that India still needs to accelerate the development of quality retail spaces in major cities to unlock further potential. The country remains highly attractive to global retailers seeking to expand their footprint, which could drive greater transaction volumes in the coming years.

Retail Sector Recovery and Expansion

Sameer Verma, General Manager at Lulu Mall, Lucknow, echoed the sentiment, noting that the steady increase in mall leasing activity aligns with the broader recovery and expansion of India’s retail sector. With evolving consumer preferences and a more dynamic retail landscape, these trends suggest a bright future for the Indian retail market.

For more updates on retail leasing trends, real estate developments, and economic outlooks, visit Finance Saathi for detailed analysis and expert insights.

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