Retail sector leasing remains resilient as 27 new global brands enter India in 2024

Mumbai: The Indian retail sector leased 8.1 million square feet of area in shopping malls and prominent high streets across top seven cities in 2024, overcoming limited new supply, according to a report on Saturday.

The year witnessed new retail space additions of nearly 1.7 million square feet across seven retail developments in Mumbai, Delhi-NCR, Bengaluru, Kolkata, Chennai, Pune and Hyderabad, according to a JLL India report.

Despite limited infusion of new spaces of superior quality, momentum in retail sector’s gross leasing remained unaffected as retailers continued to expand footprint across retail formats throughout the year.

Bengaluru accounted for 34 per cent share of the total leasing activity, followed by Delhi NCR (14 per cent) and Mumbai (14 per cent).

The concentration of 62 per cent 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, said the report.

“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,” said Dr Samantak Das, chief economist and head of research and REIS, India, JLL.

With a significant 2.8 million sq ft share in leasing activity, Bengaluru surpassed the combined leasing volume of Delhi-NCR and Mumbai.

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 in the country to cater to Indian consumers perpetual preference for global brands.

“The entry of these brands in 2024 represents a 45 per cent share of the total international brands that entered India since 2021,” the report mentioned.

Despite continued interest from international retailers, domestic retailers dominated the gross leasing with more than 80 per cent share, leasing approximately 6.5 million sq ft in 2024.

“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,” said Rahul Arora, head (office leasing and retail services), and senior managing director–Karnataka, Kerala, India, JLL.

—IANS