Retail Sector Leasing in India Shows Strength as 27 Global Brands Make Their Debut in 2024
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Synopsis
In 2024, India's retail sector leased 8.1 million square feet across major cities, despite limited new supply. The entry of 27 global brands doubled from the previous year, indicating strong demand for international brands.
Key Takeaways
- 8.1 million sq ft leased in 2024.
- Bengaluru led with 34% leasing activity.
- 27 new global brands entered India.
- Domestic retailers held over 80% leasing share.
- Luxury sector remained strong with 190,000 sq ft leased.
Mumbai, Jan 25 (NationPress) The Indian retail sector successfully leased 8.1 million square feet of shopping mall and high street space across the top seven cities in 2024, despite a limited supply of new properties, as highlighted in a report released on Saturday.
The year saw the addition of nearly 1.7 million square feet of new retail space through seven developments in Mumbai, Delhi-NCR, Bengaluru, Kolkata, Chennai, Pune, and Hyderabad, according to findings from JLL India.
Even with a restricted influx of high-quality spaces, the retail sector's gross leasing activity remained robust, as retailers continued to broaden their presence across various formats throughout the year.
Bengaluru accounted for 34 percent of total leasing activity, while Delhi NCR and Mumbai each contributed 14 percent.
The fact that these three major Indian cities represent 62 percent of total retail space take-up highlights the strong demand for consumption in prime retail zones and key high streets, the report noted.
“The demand from retailers for prime retail locations stayed strong throughout 2024, with sectors like fashion and apparel capturing the largest share of total retail leasing,” commented Dr. Samantak Das, chief economist and head of research and REIS, India, JLL.
Bengaluru achieved a significant leasing volume of 2.8 million sq ft, surpassing the combined totals of Delhi-NCR and Mumbai.
In 2024, 27 new international brands entered India, nearly doubling the 14 that made their debut in 2023.
Over the past four years, a total of 60 international retailers have entered the Indian market to meet the ongoing demand for global brands among Indian consumers.
“The introduction of these brands in 2024 accounts for 45 percent of all international brands that have entered India since 2021,” the report stated.
Despite the sustained interest from international retailers, domestic players dominated the leasing landscape with over 80 percent share, leasing around 6.5 million sq ft in 2024.
“Delhi NCR emerged as the top choice for more than half of these international retailers to launch their first stores, followed by Mumbai. The luxury retail sector also showed strong performance, with high-end brands leasing approximately 190,000 square feet in 2024,” stated Rahul Arora, head (office leasing and retail services), and senior managing director–Karnataka, Kerala, India, JLL.
