Retail space leasing in eight major cities increased by 48 per cent to 7.1 million square feet last year due to increased demand from merchants in shopping malls and high street locations, according to a report by the real estate consultant firm CBRE. In the previous year, retail space leasing stood at 4.8 million square feet.
"The retail sector recorded an all-time high leasing in 2023, touching a historic level of 7.1 million square feet across eight cities," CBRE said in a statement.
According to the report, retailers are showing increased interest in setting up, expanding, and upgrading their outlets in India, which has emerged as one of the most promising consumer markets.
"Demand for retail spaces in recently completed malls played a significant role in shaping the overall retail space occupancy during the year, and nearly 30 per cent share in total absorption was led by primary leasing in these malls," it added.
With a 32 per cent share of the total lease, fashion and apparel drove the majority of the leasing of retail space in 2023. Athleisure and mid-range fashion brands have a significant influence on this share of the industry.
In terms of overall leasing during 2023, homeware and department stores account for a 17 per cent share, followed by food and beverage at 12 per cent, luxury at 9 per cent, and consumer electronics at 6 per cent.
Speaking on the findings of the report, Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East and Africa, CBRE, said, "As we navigate global challenges, the resilient discretionary spending and robust retail consumption, coupled with easing inflationary pressures, is propelling retail leasing activity."
“This positive momentum is expected to continue, aligning with our anticipation for a similar trend in the years ahead,” Magazine added.
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