Cushman & Wakefield’s Q3-2024 Retail MarketBeat Report reveals a robust retail leasing market driven by high main street demand across India’s top cities. Leasing volume hit 1.6 million square feet (MSF), with Hyderabad, Delhi-NCR, and Mumbai leading.
Main streets accounted for 68 per cent of the leasing, with cities like Delhi-NCR, Bengaluru, and Chennai experiencing rental increases of up to 15 per cent year-over-year due to strong demand.
In contrast, malls saw subdued activity, representing only 32 per cent of leasing, as no new mall supply entered the market this quarter. Grade-A mall vacancy rates tightened significantly, with top locations drawing strong interest from foreign brands, which now represent 30 per cent of mall leasing volume.
Cities like Mumbai, Bengaluru, and Pune are projected to see new Grade-A mall supply totaling 1.8 MSF by Q4.
Saurabh Shatdal, Head Retail and Managing Director, Capital Markets,Cushman & Wakefield, says, "“The Indian retail sector is evolving rapidly, and main streets continue to record high leasing due to limited mall supply. The strong demand-supply dynamic has driven rental growth, particularly in Delhi NCR and Pune. Malls, however, faced a quieter quarter due to a lack of supply—a gap that we expect to be addressed in Q4. Retail leasing trends, led by Fashion, F&B, and Accessories, reveal a clear shift toward more discretionary spending, highlighting the evolving lifestyles of Indian consumers.”
In Q3 2024, Delhi NCR recorded 0.3 million square feet (MSF) in retail leasing, with Gurugram leading at 44 per cent and Galleria Market rentals increasing 20 per cent year-over-year. Mumbai followed with 0.16 MSF in mall leasing, marking a 76 per cent year-over-year increase, with main streets like Linking Road seeing rental growth of 5-7 per cent.
Bengaluru reached a total leasing volume of 0.2 MSF, with malls contributing 44 per cent and main streets 56 per cent. Chennai experienced a 28 per cent rise in main street leasing quarter-over-quarter, though mall leasing was limited by a shortage of quality space.
Hyderabad's retail sector recorded 0.49 MSF in leasing, with main street rents rising 10 per cent year-over-year. Pune saw 109,400 square feet leased, an 85 per cent increase from Q2 2024, driven by demand from new brands.
Anticipated new mall spaces in Q4 are expected to further bolster India's retail sector, which remains on a growth trajectory, according to Cushman & Wakefield’s optimistic outlook.
