As retailers continued to have a bullish perspective in the second half of 2024, retail leasing reached over 6.4 million square feet across the top eight Indian cities, according to CBRE.
The analysis predicts a robust supply pipeline for 2025, with a number of investment-grade assets projected to start operations in Tier-1 cities, such as Bengaluru, Hyderabad, Delhi-NCR, and Mumbai.
In 2024, there were 1.2 million square feet of retail space available. Demand was high in the fashion and clothing industry in 2024, particularly in the athleisure, mid-range, and value fashion sectors. As a result of this strong demand, 37 per cent of the total retail space leased in the second half of the year fell into these categories.
According to the report, the direct-to-consumer (D2C) sector grew rapidly, accounting for around 7 per cent of all leasing activity in 2024 and occupying about 0.6 million square feet of space. More than 70 per cent of the D2C segment’s lease was made up of department stores, home goods, and clothing and fashion.
In the second half of 2024, retail space take-up in Tier-1 cities was approximately 3.2 million square feet, which was comparable to the leasing activity during the preceding six months. With a combined 58 per cent of the total retail space taken up in H2 2024, Bengaluru led the way in space absorption, followed by Hyderabad and Delhi-NCR.
India remains a major market for international retailers, according to CBRE, with a number of brands making their way there through clever local alliances. In order to highlight its re-entry, the French retail operator Carrefour signed a deal with Dubai’s Apparel Group. Stores are anticipated to open in 2025.
Important newcomers to the fashion and clothing industry in 2024 included the American fashion brand AMIRI, the well-known Italian footwear brand Aquazzura, and the American footwear retailer Foot Locker, which opened its first location in the National Capital Region. Notable additions to the luxury market in 2024 included the French luxury fashion house Maison Margiela in Mumbai, the Swiss luxury watch store TimeVallée in Bengaluru and Mumbai, the UK-based menswear brand Charles Tyrwhitt in Ahmedabad, and Zen Diamonds in Mumbai.
It is anticipated that retail leasing activity in India would continue to grow steadily in the future, with a balanced mix of primary and secondary deals. Interest in retail spaces and larger formats is being fuelled by strong demand from areas including mid-range fashion, value clothes, athleisure, and jewellery, which will ensure continuous growth across key locations. With 5–6 million square feet of Grade A malls projected to open their doors throughout cities in 2025, supply addition is predicted to pick up speed. Cities like Delhi-NCR, Hyderabad, Mumbai, and Bengaluru are expected to be major contributors to this supply expansion.
