The retail sector in India witnessed strong growth in the first half of 2024, driven by economic recovery and higher consumer spending, according to the ANAROCK Retail report. Mall vacancy rates improved significantly, dropping to 8.3% from 15.5% in 2021, as demand outpaced supply. Prime malls are operating at near-full capacity, with national and international brands competing for top locations. Apparel, accessories, and F&B sectors led leasing activity, while jewelry and watch stores grew to 6% of leases. Smaller spaces dominated this year, but larger spaces are expected to increase as new retail projects, primarily in NCR, MMR, and Hyderabad, come online. Rising high-street rents reflect the strong demand for premium retail spaces.
The retail sector has seen remarkable growth in the first half of 2024, driven by favorable economic conditions and increasing consumer spending, according to the ANAROCK Retail report. Mall vacancy rates have dropped to 8.3%, a significant improvement from 15.5% in 2021, as demand for retail space continues to outpace supply.
Anuj Kejriwal, CEO & MD of Retail, Industrial & Logistics at ANAROCK Group, noted that top-tier malls across the country are operating at near-full capacity due to limited new supply and strong leasing activity. Both national and international brands are eager to secure prime locations in successful malls and high-street areas.
The Apparel & Accessories and Food & Beverages sectors remain the top performers in retail, while standalone watch and jewelry stores have shown impressive growth, now making up around 6% of total leasing activity.
According to Anuj Kejriwal, CEO & MD at ANAROCK Group, most leases this year-about 70%-were for smaller spaces of up to 2,500 square feet. However, with more retail developments in the pipeline, larger spaces are expected to take up a bigger share of the market. The bulk of the new supply, over 85%, is set to come from the NCR, MMR, and Hyderabad regions within the next 4-5 years.
Rental prices on prominent high streets are steadily increasing and are expected to keep climbing until more high-quality spaces become available. In the first half of this year, leasing activity remained strong, matching the momentum of the past two years, with over 3 million square feet leased across major cities. Significant new retail space is expected to be added in the coming years, with the NCR leading the way in supply expansion.
The ANAROCK Retail report is a periodic market analysis published by ANAROCK Group, focusing on trends, performance, and key developments in the retail real estate sector in India. It examines factors like leasing activity, mall vacancy rates, rental trends, and upcoming supply.
Advertisement
Facebook
Whatsapp
