Summary:

During the July-September quarter, high streets accounted for 68% of overall retail leasing, or 1.6 million square feet (MSF). Hyderabad, Delhi-NCR, and Chennai made up 70% of the major street rental volume. Strong demand drove rental increases in areas such as Delhi-NCR, Bengaluru, Chennai, and Kolkata, with rents rising by up to 15% year on year. Meanwhile, leasing activity in malls remained sluggish, accounting for only 32% of total leasing volume due to limited new mall supply.

The Indian retail industry is evolving, with strong leasing activity on major streets due to limited mall availability. This demand-supply dynamic has fueled rental increases, especially in Delhi-NCR and Pune. Malls had a quiet quarter due to limited supply, but Mr. Saurabh Shatdal, Head of Retail at Cushman & Wakefield, expects that to change in Q4. The survey also highlighted tighter vacancy rates in Grade-A malls, driven by strong demand from multinational brands, which will account for 30% of leasing volume in 2024.

Source: IBEF 

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