Demand for retail space in malls, high streets in top 8 cities up nearly 5% in January-September: C&W report
Rents for retail space in shopping centers and prominent high streets rose by nearly five percent between January and September of this year in eight major cities, according to Cushman & Wakefield. Real estate consultant Cushman & Wakefield’s data showed that the absorption or leasing of retail space in Grade A malls and highways across the eight top cities reached 5.53 million square meters during January-September 2024 against 5.29 million square meters in the corresponding period. of the previous year.
These eight cities are — Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad.
Saurabh Shatdal, Managing Director (Financial Markets) and Head-Retail-India, Cushman & Wakefield, said, “Retail growth in India remains steady as evidenced by strong leasing numbers, both in malls and high streets”.
Increasing discretionary spending and changing consumer preferences are driving demand for high-end retail spaces, he added.
Shatdal, however, said that India will need to accelerate the development of high-end retail spaces in all major cities to unlock larger prices, as it remains very attractive to global retailers looking to expand their footprint.
Commenting on the data, Akash Nagpal, VP-Leasing of realty firm Trehan Iris, said this growth reflects a strong return and renewed sense of confidence in the retail sector.
“As consumer behavior evolves after the pandemic, there is a clear need for flexible, experiential spaces. Therefore, our approach is to create retail spaces that not only meet traditional needs but also encourage community involvement, providing an experience that cannot be duplicated online.” Sameer Verma, General Manager at Lulu Mall, Lucknow, said the continued increase in retail leases in major cities underlines the strong sustainability and expansion of the retail sector.
“This positive trend is in line with our vision to create world-class merchandise that adapts to changing consumer preferences while fostering a thriving ecosystem for our retail partners,” he added.
According to data from Cushman & Wakefield, leasing of high street retail space increased to 3.82 million square feet during January-September this year from 3.44 million square feet in the same period last year.
However, absorption of retail space in supermarkets fell to 1.72 million square feet from 1.85 million square feet.
Among the cities, the prominent high street areas of Hyderabad saw strong demand for retail space, with 1.72 million square feet taken up during January-September 2024 against 1.60 million square feet in the year-ago period.
