Retail Space Demand In Malls And High Streets Up 5% In Jan-Sept 2024: Report

The firm’s data revealed that retail space absorption in Grade-A malls and prime high streets across eight major cities reached 5.53 million square feet in the first nine months of this year

Leasing activity for retail space in shopping malls and prominent high streets saw a nearly 5 per cent increase during the January-September period of 2024, according to data from real estate consultant Cushman & Wakefield.

The firm’s data revealed that retail space absorption in Grade-A malls and prime high streets across eight major cities reached 5.53 million square feet in the first nine months of this year, up from 5.29 million square feet during the same period in 2023.

The report includes the cities of Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, and Ahmedabad.

Saurabh Shatdal, Managing Director (Capital Markets) and Head-Retail-India, Cushman & Wakefield, said, "India's retail real estate growth remains intact as can be observed from the strong leasing numbers, both in malls and main streets".

He noted that rising discretionary spending and shifting consumer preferences are fueling the demand for premium retail spaces. However, Shatdal emphasised that India must accelerate the development of high-quality retail spaces in key cities to unlock even greater transaction volumes as the market continues to be highly attractive to global retailers seeking expansion opportunities.

Akash Nagpal, VP of Leasing at realty firm Trehan Iris, also commented on the data, describing the growth as a clear indication of a robust recovery and renewed confidence in the retail sector. "With consumer behaviour evolving post-pandemic, there's a clear demand for dynamic, experiential spaces. Hence, our approach is to create retail destinations that not only cater to traditional retail needs but also promote community engagement, offering experiences that can't be replicated online,” Nagpal added.

Sameer Verma, General Manager at Lulu Mall, Lucknow, said the steady increase in mall leasing activity across major cities underscores the robust recovery and expansion of the retail sector.

"This positive trend aligns with our vision of creating world-class retail experiences that cater to evolving consumer preferences while fostering a thriving ecosystem for our retail partners," he added.

According to data from Cushman & Wakefield, leasing activity on high streets increased to 3.82 million square feet during January-September 2024, up from 3.44 million square feet during the same period last year. However, the absorption of retail space in shopping malls declined, falling to 1.72 million square feet from 1.85 million square feet.

Among the cities, Hyderabad's prime high-street locations experienced strong demand, with retail space leasing rising to 1.72 million square feet in January-September 2024, compared to 1.60 million square feet during the same period in the previous year.