CBRE South Asia Pvt. Ltd., India's premier real estate consultancy, has unveiled the insights from its latest report, "India Market Monitor Q3 2023." This comprehensive report delves into the evolving trends and dynamics within India's real estate sector.
The report reveals a substantial year-over-year growth of 46% in retail sector leasing during the January to September 2023 timeframe. The total space absorbed in the top eight Indian cities reached 4.73 million square feet, a noteworthy increase from 3.23 million square feet in the corresponding period of 2022. Fashion and apparel, along with home and department stores, together constituted more than half of the leasing activity. Among these top cities, Bangalore, Delhi-NCR, and Pune collectively accounted for over 61% of the leasing activity. Notably, supply additions also experienced an extraordinary 577% year-over-year surge, surpassing 2.98 million square feet in Jan-Sep'23.
In the nine-month span of Jan-Sep '23, the fashion and apparel sector comprised 34% of the leasing share, home and department stores claimed 17%, and food and beverage establishments held 13%. Delhi-NCR, Chennai, and Pune spearheaded leasing in the fashion and apparel category, while the highest concentration of home and department store leasing occurred in Pune, Ahmedabad, and Mumbai. Bangalore dominated with the most significant leasing share of 30% during Jan-Sep '23, trailing Delhi-NCR at 19%, Pune at 12%, and Chennai at 11%.
In the third quarter of July-Sep'23, the total leasing activity reached 1.84 million square feet, with Bangalore and Pune jointly representing 59% of the retail space leasing. Bangalore outshone others with a substantial 35% share, followed by Pune at 24% and Hyderabad at 14%. Delhi NCR also contributed an 11% share to the total leasing during this period. Among these cities, fashion and apparel brands took the lead with a 33% share of the total leasing, while homeware and department stores made up 22% of the total leasing activity in the top eight cities during Jul-Sep '23.
Moreover, during Jul-Sep'23, the top eight cities experienced an impressive 100% year-over-year increase in mall completions. Pune spearheaded the growth in supply additions with a 58% share, followed by Delhi-NCR at 19%. This period also saw domestic firms taking the lead in leasing activity, constituting 68% of the market share, followed by retailers from EMEA (22%), APAC (8%), and America (3%).
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