New Delhi [India], July 26 : Leasing activity by retailers in organised retail centres and key high streets across the top seven cities in India surged by over 100 per cent in the second quarter (Q2) of 2024, according to a report by real estate firm JLL.
Despite a recent slowdown in consumption growth for certain discretionary retail categories, retailers have strategically responded by closing unviable stores and expanding into new markets, the report underscored.
It noted that the leasing activity rose to 2.2 million sq. ft., marking a significant 100 per cent increase compared to the previous quarter, resulting in a robust 3.3 million sq. ft. of cumulative leasing transactions in H1 2024.
JLL attributes this surge to retailers securing leases in newly completed Grade A projects launched by established developers and expanding into organised high streets and evolving catchments, the report further added.
The fashion and apparel segment, particularly in the value and super value segments, led the leasing activity during 2024, capturing the highest share in leasing at 38 per cent.
The mid-segment dominated this category, accounting for 56 per cent of the activity. Additionally, the F&B and entertainment segments together represented approximately 30 per cent of the leasing volume in H1 2024, transforming shopping malls into vibrant social and entertainment hubs, it added.
Underscoring factors such as positive demographics, a stable economy, and the project completion time, the JLL report expected a strong outlook for India's retail segment.
"The first half of 2024 saw domestic brands taking the lead in the retail market, accounting for an impressive 80 per cent of the gross leasing. Among the international brands, Europe, the Middle East, and Africa (EMEA)-based retailers dominated the gross leasing, having more than 50 per cent of the share, while the Americas accounted for 27 per cent and APAC for 21 per cent.
"Additionally, India's appeal as a retail destination was strengthened with the opening of nine international brands' maiden stores, primarily focusing on expansion in Delhi NCR and Mumbai," said Samantak Das, Chief Economist and Head of Research & REIS, India, at JLL.
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