Retail Leasing Trends Reflect Evolving Consumer Habits in India

Retail leasing in India's top eight cities saw a slight drop of 1% in Q3 2024, as reported by Cushman & Wakefield. Main streets accounted for 68% of new leases, demonstrating a preference for high-street shopping amid limited mall supply. Rental growth is strong in key cities.

Retail leasing across India's top eight cities decreased slightly by 1% in the third quarter of 2024, totaling 1.63 million square feet, according to a report by Cushman & Wakefield. Despite this minor decline, main streets have shown significant activity, dominating the leasing scenario with 68% of the total new leases.

The report highlighted that strong demand on main streets has contributed to rental growth, particularly in major cities like Delhi-NCR, Bengaluru, Chennai, and Kolkata, where rents have surged by as much as 15% year-on-year. Retail sectors such as fashion, food and beverage, and accessories are driving this trend, emphasizing a shift towards discretionary spending.

Cushman & Wakefield's Saurabh Shatdal notes the impact of limited mall supply on these trends. Meanwhile, urbanization is projected to boost the need for sophisticated retail spaces by 2030, reflecting the evolving consumer landscape. This shift highlights a blend of lifestyle, entertainment, and community engagement as key factors in the future of Indian retail.

(With inputs from agencies.)