In 2023, the retail sector in India achieved a historic milestone with a record leasing of 7.1 million square feet across the country’s top eight cities, marking a remarkable 47% increase from the previous year. A report released on Wednesday by CBRE’s “India Market Monitor Q4 2023” highlighted that the demand for retail spaces was particularly strong in recently completed malls.
The surge in leasing activity in the second half of the year was notably influenced by significant foreign investments in Indian enterprises. Notable investments include $1 billion and $598 million in Reliance Retail by the Qatar Investment Authority and the Abu Dhabi Investment Authority, respectively.
Fashion and apparel dominated the retail leasing market, constituting approximately 32% of the total. CBRE emphasized the impact of athleisure and mid-range fashion businesses in this sector. International players expanded their presence in India, with notable entries including Canadian lingerie shop La Vie en Rose, French brand Bugatti Fashion, and American lingerie brand Victoria’s Secret.
Luxury brands, accounting for 9% of all retail leasing, experienced rapid expansion, showing a promising trend. CBRE predicts continued growth for luxury brands across various retail formats, such as high streets, malls, and upscale standalone complexes.
Looking ahead, CBRE anticipates a decline in retail sales and consumer expenditure in 2024 compared to 2023. However, retailers are expected to innovate by introducing new in-store experiences to enhance customer interaction. The research underscores the dynamic and evolving landscape of India’s retail sector, fueled by both domestic and international factors.
