Indian Retail Sector Sees Strong Leasing Activity In Top 7 Cities From January To September 2024: JLL Report

Mumbai: The Indian retail market reported very strong leasing activity across the country’s top seven cities, including Mumbai and Pune, during the first nine months (January to September) of 2024, according to JLL India. Despite limited new retail space additions of just over 1 million sq. ft, the market demonstrated remarkable resilience, with gross leasing reaching an impressive 5.3 million sq. ft.

Mumbai, Bengaluru and Delhi NCR emerged as the frontrunners, collectively accounting for 59% of the total leasing activity. This concentration of demand in major metropolitan areas underscores the continued appeal of prime retail locations to retailers.

“Despite limited new retail space additions of slightly over 1 million sq. ft, the top seven cities witnessed robust retail gross leasing activity totalling 5.3 million sq. ft in the nine-month period of 2024, underscoring retailers' strong appetite for prime retail locations. Fashion and apparel remained the top category with a 37% share, followed by Food & Beverage and Entertainment at 18% and 12% respectively,” said Dr Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.

“Luxury and Bridge-to-Luxury retail maintained its momentum, with high-end brands securing 0.15 million sq. ft of space in the first nine months of 2024. Majority of this leasing happened in Mumbai and Delhi NCR with a combined share of 76%. This continued interest from luxury retailers’ signals a growing trend towards premiumization and confidence in the spending power of Indian consumers. Additionally, the country saw the entry of 20 new international retailers in the first nine months of 2024. With the influx of quality retail supply and growing demand, international retailers are keen on setting foot in India” said Rahul Arora, Head - Office Leasing & Retail Services, and Senior Managing Director – Karnataka, Kerala, India, JLL.

Additionally, domestic retailers dominated the gross leasing with a 78% share, leasing over 4 million sq ft in the first nine months of 2024. Direct-to-Consumer (D2C) brands are also increasingly leasing spaces in physical retail destinations and had a share of about 7% in total gross leasing. Malls are increasingly becoming popular destinations for India's D2C brands seeking to strengthen their connection with consumers through experiential retail.

International retailers also showed strong interest in the Indian market, leasing over 1 million sq ft across the top seven cities. European, Middle Eastern, and African (EMEA) brands led this segment with a 56% share, followed by American retailers at 23%. Looking ahead, JLL projects that retail leasing across the top seven cities will exceed 6.5-7 million sq. ft by the end of the year, signalling continued growth and optimism in India's retail sector.