The Indian retail sector is experiencing a significant surge in leasing activity across its top seven cities, reflecting the ongoing attraction of prime retail locations fueled by increasing consumer spending. A recent study by JLL India indicates that total gross leasing of retail spaces in major urban centers like Mumbai, Delhi NCR, Bengaluru, Kolkata, Chennai, Pune, and Hyderabad is anticipated to surpass 6.5 to 7 million square feet by the end of 2024. This comes after recording over 5.3 million square feet in the first three quarters of the year.
Although new retail space additions have been somewhat limited, totaling just over one million square feet, the sustained leasing activity highlights retailers’ strong preference for prime locations. The fashion and apparel sector leads the leasing landscape, accounting for 37% of total activity, while food and beverage and entertainment sectors represent 18% and 12%, respectively.
Bengaluru, Delhi NCR, and Mumbai are the key players in this trend, collectively representing 59% of the total leasing activity. The demand for both luxury and bridge-to-luxury retail remains robust, with high-end brands securing 0.15 million square feet in the first nine months of 2024, particularly in Delhi NCR and Mumbai, which accounted for 76% of this leasing. During the same timeframe, India welcomed 20 new international retailers, over half of whom chose Delhi NCR as the location for their first stores.
Domestic retailers were predominant in gross leasing, capturing a 78% share by leasing more than 4 million square feet in the first nine months of the year. Direct-to-consumer brands also played a role, contributing approximately 7% to the total gross leasing, as malls increasingly attracted these brands seeking enhanced consumer interaction through experiential retail. International retailers accounted for over one million square feet of leasing, with European, Middle Eastern, and African brands leading the charge, holding a 56% share in this segment.
