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• Retail leasing across malls and high streets in India’s top seven cities fell 15 per cent quarter-on-quarter to 3.1 million sq ft during the January-March period, as per JLL.
• The decline was mainly due to limited fresh supply of institutional-grade mall space, with only 0.25 million sq ft added during the quarter compared to 2.5 million sq ft in the previous quarter.
• On a year-on-year basis, leasing remained stable, indicating steady demand from retailers despite supply constraints.
• Fashion and apparel led leasing activity with a 33 per cent share, followed by entertainment at 16 per cent and food & beverage at 15 per cent.
• Indian retailers dominated the market with a 79 per cent share, supported by expansion from D2C brands and rising physical retail adoption.
Gross leasing of retail spaces across malls, high streets and prime retail developments fell 15 per cent during the January-March quarter across India’s top seven cities, mainly due to lower addition of new institutional-grade mall supply, according to property consultant JLL. Advertisement
The consultant released its latest retail market data earlier this week, covering leasing activity in Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune. Gross leasing during the quarter stood at 3.1 million sq ft, compared to 3.6 million sq ft recorded in the previous quarter.
Despite the sequential decline, leasing activity remained stable compared to the same period last year, indicating that retailer demand continued to remain healthy even as supply additions slowed down.
JLL said the moderation in quarterly leasing was largely linked to the absence of major new mall completions after strong supply additions seen in the previous quarter. Around 2.5 million sq ft of institutional-grade mall space had entered the market during the October-December period, while only 0.25 million sq ft was added in the latest quarter.
Industry experts said limited availability of quality retail space in key micro-markets continues to keep occupancies and rentals firm across major cities. Demand from domestic brands, especially direct-to-consumer (D2C) companies expanding into physical retail formats, remained a major driver of leasing activity.
Rahul Arora, Head - Office Leasing & Retail Services and Senior Managing Director (Karnataka, Kerala), India at JLL, said the country’s retail real estate sector is entering the next phase of expansion supported by rising consumption levels, increasing store expansion by D2C brands and changing retailer strategies.
He added that India currently has a pipeline of 46.1 million sq ft of institutional-grade retail developments planned through 2030, while retailer demand continues to outpace supply in several markets.
Indian retailers accounted for 79 per cent of the total leasing volume during the quarter, reflecting strong domestic consumption trends and expansion plans by homegrown brands.
Among categories, fashion and apparel continued to dominate retail leasing activity with a 33 per cent share during the quarter. The entertainment segment emerged as one of the strongest performers with a 16 per cent share, moving to the second position among all retail categories.
Food and beverage brands followed closely with a 15 per cent share as restaurant chains, cafes and quick-service restaurant operators continued expanding across malls and high streets in major cities.
Retail consultants have observed that organised retail demand has remained resilient over the last few quarters despite global economic uncertainties, supported by urban consumption, premiumisation trends and increasing preference among brands for experience-led physical stores.
Source PTI
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