In the first quarter of 2024, approximately 1.1 million sq. feet of retail space was leased across organised retail centres and high streets.
“The fashion and apparel sector emerged as the dominant player in retail leasing, contributing 40 percent to the overall volume,” a JLL report informed.
“Mid-segment brands claimed the largest share at 40 percent, followed closely by value segment brands at 38 percent,” the report added.
According to the report, just four cities like Mumbai, Delhi NCR, and Bengaluru collectively dominated the market, accounting for nearly 70 percent of the total leasing activity.
Apart from fashion, leasing activities encompassed foods and beverages, jewelry, lifestyle products, automobiles, and banking services, showcasing a diverse tenant mix in India’s retail markets.
The leasing trends were particularly concentrated in India’s top seven cities like Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and Pune.
The report further said that looking ahead, approximately 78 percent of the upcoming retail supply, totaling about 45 million square feet, is expected to be lease-based.
This approach allows developers greater control over tenant mix and property management, thereby enhancing the quality of retail offerings and rental potential.
The surge in retail developments has prompted retailers to explore new micro-markets, bringing them closer to emerging consumer bases and underscoring the urbanization trends in India.
Prime retail spaces with high footfall continue to be in strong demand nationwide, appealing to both international and national retailers seeking well-curated tenant mixes and superior infrastructure.
While vacancy rates remain low or around 6 percent in top-quality retail centers, average retail developments face higher vacancy rates or approximately 20 percent.
“Efforts are underway to revitalise underperforming retail spaces through repurposing or transformation to meet evolving market demands,” the report stated.
