JLL India reports a significant rise in leasing activity in the Indian retail market across the top seven cities-Mumbai, Delhi NCR, Bengaluru, Kolkata, Chennai, Pune, and Hyderabad-during the first nine months of 2024. With gross leasing reaching 5.3 million sq. ft despite only 1 million sq. ft of new space, Bengaluru, Delhi NCR, and Mumbai accounted for 59% of this activity. Domestic retailers dominated with a 78% share, while D2C brands are increasingly finding success in malls. International retailers also showed strong interest, with EMEA brands leading the way. JLL projects retail leasing to surpass 6.5 to 7 million sq. ft by year-end.
According to JLL India, the Indian retail market witnessed a notable surge in leasing activity across the nation's top seven cities-Mumbai, Delhi NCR, Bengaluru, Kolkata, Chennai, Pune, and Hyderabad-during the first nine months of 2024, specifically from January to September. Despite the introduction of only slightly over 1 million sq. ft of new retail space into the market, the overall performance showcased remarkable resilience, with gross leasing activity soaring to an impressive 5.3 million sq. ft.
Among these cities, Bengaluru, Delhi NCR, and Mumbai emerged as the frontrunners, collectively accounting for a significant 59% of the total leasing activity. This concentration of demand in major metropolitan areas serves to highlight the enduring appeal and strategic importance of prime retail locations for retailers looking to establish or expand their presence in the market.
In addition to this, domestic retailers played a crucial role in driving gross leasing activity, capturing an impressive 78% share by leasing over 4 million sq. ft during the first nine months of 2024. Notably, Direct-to-Consumer (D2C) brands are increasingly establishing a foothold in physical retail destinations, contributing approximately 7% to the total gross leasing figures. This trend underscores the growing recognition among D2C brands of the value of physical locations, particularly malls, which have become increasingly popular venues. These malls offer D2C brands an opportunity to enhance their connection with consumers through engaging and experiential retail experiences, allowing them to build brand loyalty and visibility in a competitive market.
International retailers also demonstrated strong interest in the Indian market, leasing more than 1 million sq. ft across the top seven cities. Within this segment, European, Middle Eastern, and African (EMEA) brands took the lead, accounting for 56% of the international leasing activity, while American retailers followed with a notable share of 23%. This influx of international brands into the Indian retail landscape signifies a growing confidence in the market's potential and underscores its attractiveness as a destination for global retail players.
Looking forward, JLL projects that retail leasing across the top seven cities will exceed 6.5 to 7 million sq. ft by the end of the year, signaling continued growth and optimism within India's retail sector. This anticipated growth reflects not only the recovery from previous challenges but also the evolving landscape of retail in India, driven by both domestic and international players who are keen to capitalize on the opportunities presented by this vibrant and expanding market. As consumer preferences continue to shift and evolve, the retail sector is likely to adapt, offering innovative and engaging shopping experiences that cater to the diverse needs of the Indian populace.
The optimistic outlook for India's retail sector highlights its resilience and adaptability in a rapidly changing market. With both domestic and international players keen to seize opportunities, the landscape is evolving to meet diverse consumer needs. The anticipated growth signals a promising future for retail in India, marked by innovation and consumer engagement.
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