In 2023, luxury firms leased an impressive 600,000 square feet of retail space, marking a significant increase from 230,000 square feet the previous year. This surge, the largest in six years, reflects the robust demand in the premium consumer category.
CBRE research reveals that luxury brands accounted for 9% of overall leasing activity in 2023, a notable increase from just 3% in 2018. Anshuman Magazine, CBRE’s chairman for India, Southeast Asia, the Middle East, and Africa, attributes this growth to the growing customer aspiration for global brands and the rise in discretionary spending.
The luxury sector, experiencing double-digit annual growth in 2023, is witnessing a positive trend fueled by the entry and expansion of foreign companies. La Vie en Rose, a Canadian lingerie boutique, partnered with Apparel Group India to launch its first store in Noida in July 2023, subsequently expanding to Pune and Bengaluru.
Similarly, Rimowa, a renowned German luxury luggage brand, entered the Indian market in collaboration with Reliance Brands, inaugurating its inaugural store in Mumbai.
According to Harsh Bansal, co-founder of Unity Group, which operates six malls in Delhi, the aspirational class in India is driving consumption, leading to a surge in demand for retail space as businesses expand.
