Whalesbook
High Streets Lead Leasing
India's retail real estate market started 2024 strong, with 3.1 million sq ft leased across the top seven cities. This performance was driven by ongoing demand from retailers and limited new, high-quality mall space. High streets led leasing activity, making up 48% of leases that quarter. This rise in street-level leasing shows retailers looking for convenient spots as mall options are scarce.
Top Sectors and Retailer Growth
With limited supply, demand focused on existing retail types. Fashion and Apparel remained the top sector, showing continued shopper interest. Entertainment was the second biggest contributor, accounting for 16% of leasing. This growth came mainly from cinema operators opening new-style theaters, showing a comeback for in-person experiences. Food & Beverage followed with a 15% share, highlighting how connected different retail elements are today.
Domestic retailers drove demand, making up 79% of leasing. Direct-to-consumer brands also kept expanding their physical stores. Meanwhile, international retailers greatly increased their expansion, with leasing up 48% year-over-year. This shows growing confidence in India's economy and its appeal to global brands.
Future Supply and Investment Potential
The retail sector is set for significant long-term growth, with a pipeline of 46.1 million sq ft planned for completion between 2026 and 2030. This upcoming supply is expected to ease current shortages, meet rising retailer needs, and help rents increase. Such growth should draw significant investment into retail property, reinforcing India's role as a major market.