Retail Leasing Trends: A City's Tale of Boom and Bust

Leasing of retail spaces fell by 10% last year across eight major Indian cities, according to CBRE data. Despite this, India's retail landscape is set for growth, with new Grade A malls expected by 2025. Mid-range fashion and athleisure segments drive demand as retail spaces transform into experience destinations.

Leasing trends for retail spaces in India have experienced a marked decline, dropping 10% across eight major cities last year, per a report by CBRE. The data highlights a fall in leased space from 71 lakh square feet in 2023 to 64 lakh square feet in 2024.

Investment-grade properties like shopping malls and high streets have been affected, yet the outlook for India's retail landscape is upbeat. Significant growth is anticipated in 2025, boosted by 5-6 million square feet of Grade A malls starting operations in key cities such as Delhi-NCR, Hyderabad, Mumbai, and Bengaluru.

Anshuman Magazine, Chairman & CEO of CBRE India, attributes steady leasing activity to a robust supply pipeline and strong demand in segments like mid-range fashion and athleisure. New strategies involving social media engagement and quick commerce are expected to further transform India's retail spaces into dynamic, experiential destinations.

(With inputs from agencies.)