Lease demand increased in retail space, first place in fashion-apparel sector in Bengaluru and Delhi-NCR

According to a report, in Bengaluru, Delhi-NCR, and Ahmedabad, where 65 percent of new leasing took place, retail space renting increased by 24 percent. Its supply has increased by 148 percent in the first half of 2023.
According to data compiled by real estate consulting firm CBRE South Asia, mall completions increased by 8 percent on a half-yearly basis during the first six months of the year, leading to a jump in retail space supply. Let's know about the complete news.
As per data from eight markets, Bengaluru topped the list with 0.8 million sq ft to be leased during the period under review, followed by Delhi-NCR (0.7 million sq ft), Chennai and Ahmedabad (0.4 million sq ft each), Mumbai and Hyderabad (0.2 million sq ft each), Kolkata (0.06 million sq ft) and Pune (0.12 million sq ft).
As per the report, retail leases increased by 24 percent year-on-year during January-June 2023, as against a 15 percent increase in the year-ago period. Total leasing during the period stood at 2.87 million sq ft as against 2.31 million sq ft, led by Bengaluru, Delhi-NCR, and Ahmedabad. Their collective share was 65 percent.
The period also saw a 148 percent year-on-year growth in supply at 1.09 million sq ft as compared to 0.44 million sq ft, it said. In addition, these eight cities witnessed an 8 percent increase in mall completions due to increased buyer interest, with Ahmedabad recording the maximum share of 73 percent, followed by Delhi-NCR at 20 percent.
The combined share of Bengaluru and Delhi-NCR in retail space leasing stood at 59 percent. During this period, Bengaluru emerged as the leader in leasing, garnering a significant share of 35 percent in total leasing, followed by Delhi-NCR with a 24 percent share, Chennai with a 14 percent share, and Hyderabad with an 11 percent share.
Leasing activity was mainly driven by fashion and apparel at 38 percent, food, and beverages at 18 percent, luxury and home and department store sector at 11 percent, and the consumer electronics sector at 7 percent of the leasing activity during the period.