Retail space leasing in major cities sees 5% growth in 2024 on strong demand in malls, high streets: Cushman & Wakefield

Leasing of retail space in prominent shopping malls and high streets increased by nearly 5% from January to September this year across eight major cities, as reported by Cushman & Wakefield. 

Data from the real estate consultancy showed that retail space leasing in Grade-A malls and key high streets across these cities totalled 5.53 million square feet during the first nine months of 2024 compared to 5.29 million square feet during the same period last year. 

The eight cities covered in the report include Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad. 

Saurabh Shatdal, Managing Director of Capital Markets and Head of Retail-India at Cushman & Wakefield, stated, “The growth of India’s retail real estate sector remains strong, as evident from the impressive leasing activity in both malls and high streets.” 

He noted that increasing discretionary spending and changing consumer preferences are driving demand for premium retail spaces. 

However, Shatdal emphasised that India must accelerate the development of high-quality retail spaces in major cities to fully capitalise on the growing demand, particularly from global retailers looking to expand their presence. 

Akash Nagpal, VP of Leasing at real estate firm Trehan Iris, commented that the growth reflects a significant recovery and renewed optimism in the retail sector. “As consumer behaviour evolves post-pandemic, there is a clear demand for dynamic, experiential spaces. Our strategy focuses on creating retail destinations that not only fulfil traditional shopping needs but also foster community engagement and offer experiences that can’t be replicated online.” 

Sameer Verma, General Manager at Lulu Mall in Lucknow, highlighted that the consistent increase in mall leasing activity across major cities is a clear sign of the retail sector's robust recovery and expansion. “This positive trend aligns with our goal of providing world-class retail experiences that meet evolving consumer preferences, while also creating a thriving ecosystem for our retail partners,” he said. 

According to Cushman & Wakefield’s data, leasing of retail space in high streets rose to 3.82 million square feet from January to September this year, up from 3.44 million square feet in the same period last year. In contrast, the absorption of retail space in shopping malls decreased to 1.72 million square feet, compared to 1.85 million square feet in 2023. 

Among the cities, Hyderabad saw significant demand for retail space in its prime high-street locations, with leasing reaching 1.72 million square feet from January to September 2024, up from 1.60 million square feet in the previous year. 

(With inputs from PTI)