Retail leasing touched around 8.1 million sq ft in 2024 across eight cities in India, with Bengaluru leading in space absorption, followed by Delhi-NCR and Mumbai, a report by JLL has shown.
Retailers leased close to 8.1 million sq. ft area in shopping malls and prominent high streets across the eight cities. Bengaluru accounted for 34% share of the total leasing activity, followed by Delhi NCR (14%), and Mumbai (14%), the report showed.
With a 2.8 million sq. ft. share in leasing activity, Bengaluru surpassed the combined leasing volume of Delhi-NCR and Mumbai. Notably, the share of other cities such as Hyderabad and Chennai increased from 10% and 5% of the leasing volume in 2023 to 14% and 10% at the end of 2024, respectively.
It noted that the concentration of 62% of total retail space take-up in these three Indian megalopolises underscores the strong consumption demand in prime retail centres and key high streets in these markets.
“2023 witnessed a five-year high as new retail supply of 6.2 million sq. ft became operational across the top 7 cities. The addition of 16 new retail developments in 2023 supported retailers’ expansion plans and helped reach a gross leasing high of 8.7 million sq. ft in the year,” Samantak Das, Chief Economist and Head of Research & REIS, India, JLL said.
However, new retail supply plunged by 73% year over year in 2024, hampering the take-up of new retail space by interested retailers looking for quality spaces. Despite this decline in new retail supply, leasing moderated only by 6% over 2023 to 8.1 million sq ft
Retailer appetite for prime retail locations remained firm throughout 2024, and categories such as Fashion and Apparel continued to amass the highest percentage share in the total retail leasing pie,” he added.
As many as 27 international brands forayed into India in 2024, Delhi-NCR preferred location
In 2024, 27 new brands of international origin entered India, nearly doubling from 14 in 2023. In the past four years, 60 retailers of international origin have forayed into the country to cater to Indian consumers’ perpetual preference for global brands. The entry of these brands in 2024 represents a 45% share of the total international brands that entered India in 2021, the report showed.
Beauty, Cosmetics and Wellness, Footwear, Bags and Accessories and Fashion and Apparel were the top three retailer categories to set retail footprints in the country in 2024. The fashion and apparel sector led the leasing with a 35% share, followed by entertainment with a 10% share and food and beverage with an 8% share.
In 2024, 27 international brands entered the Indian market, 56% of which originated from the EMEA (Europe, Middle East and Africa) region. French and Italian retailers, in particular, made notable inroads.
Delhi NCR emerged as the preferred location for over half of these international retailers to open their inaugural stores, followed by Mumbai.
The luxury retail sector maintained its strong momentum, with high-end brands leasing approximately 190,000 square feet of space in 2024.
“Luxury retailers continue to show keen interest in expanding their footprint in India, primarily within the Fashion and Apparel segment, which accounted for nearly half of the total luxury space leased during the year. These trends underscore India’s growing appeal as a retail destination and highlight the increasing sophistication of its consumer market,” said Rahul Arora, Head (Office Leasing and Retail Services), and Senior Managing Director – Karnataka, Kerala, India, JLL
Despite continued interest from international retailers, domestic retailers dominated the gross leasing with more than 80% share, leasing approximately 6.5 million sq ft in 2024. Direct-to-consumer (D2C) brands also contributed to an 8% share in total leasing, comprising 0.6 million sq. ft retail spaces leased in physical retail destinations during the year. Both malls and high streets remained equally popular for India’s D2C brands seeking to establish a connection and brand identity with the discerning consumers spoilt for choice.