Retail Leasing Surges by Over 100% in India’s Top Cities in Q2 2024: JLL Report

Retail leasing in India’s top seven cities soared by over 100% in Q2 2024, driven by strategic market expansions and new Grade A projects, according to JLL. The fashion and apparel sector led with a 38% share, while domestic brands led gross leasing at 80% in H1 2024.

According to a recent report by real estate firm JLL, leasing activity by retailers in organised retail centres and key high streets across India's top seven cities surged by over 100 per cent in the second quarter (Q2) of 2024. This surge comes despite a recent slowdown in consumption growth for certain discretionary retail categories. Retailers have strategically responded by closing unviable stores and expanding into new markets.

The report highlighted that leasing activity increased to 2.2 million square feet, a significant 100 per cent rise compared to the previous quarter. This has resulted in a robust 3.3 million square feet of cumulative leasing transactions in the first half of 2024. JLL attributes this surge to retailers securing leases in newly completed Grade A projects launched by established developers and expanding into organised high streets and evolving catchments.

The fashion and apparel segment led the leasing activity, particularly in the value and super value segments, capturing the highest share at 38 per cent. The mid-segment dominated this category, accounting for 56 per cent of the activity. Additionally, the food and beverage (F&B) and entertainment segments together represented approximately 30 per cent of the leasing volume in H1 2024, transforming shopping malls into vibrant social and entertainment hubs.

JLL's report underscores positive demographics, a stable economy, and project completion time as key factors contributing to a strong outlook for India's retail segment. The first half of 2024 saw domestic brands taking the lead in the retail market, accounting for 80 per cent of gross leasing. Among international brands, retailers from Europe, the Middle East, and Africa (EMEA) dominated gross leasing with more than 50 per cent of the share, while the Americas accounted for 27 per cent and the Asia-Pacific (APAC) for 21 per cent.

"Additionally, India's appeal as a retail destination was strengthened with the opening of nine international brands' maiden stores, primarily focusing on expansion in Delhi NCR and Mumbai," said Samantak Das, Chief Economist and Head of Research & REIS, India, at JLL.

(With inputs from agencies.)