Increase in rental of retail space in major cities in India

Leasing of retail space in shopping centers rose 15% year-on-year in April-June to 6.12 lakh square feet across eight major cities, according to Cushman & Wakefield.

Cushman & Wakefield India data points to a 4% annual growth in demand for high street retail space, totaling nearly 14 lakh square feet in Q2 2024.

Leasing in malls increased to 6,12,396 sq ft from 5,33,078 sq ft last year, while high street locations increased to 13,89,768 sq ft from 13,31,705 sq ft .

Leasing data covers various types of malls and high streets in Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad.

Saurabh Shatdal, Head Retail and Managing Director, Capital Markets at Cushman & Wakefield, noted the robust demand for A-grade malls and street retail in Q2 2024, highlighting India’s vibrant retail landscape.

He noted that although street rental growth has increased significantly, the anticipated supply of Grade A malls could stabilize rental costs in the short term. In addition, the retail sector’s shift towards the high street reflects evolving consumer preferences and strong domestic brand performance.

Limited new mall openings and demand for high-quality retail space have led to the dominance of high street retail leasing. This trend is particularly evident in emerging clusters around India’s residential and commercial hubs.

Cushman & Wakefield noted that street leases made up 70% of total leases in Q2 2024, compared to 30% for mall leases.

Kolkata, Bengaluru, Hyderabad and Mumbai have witnessed sizeable year-on-year rent increases, indicating strong demand for high-street retail.

(Disclaimer: With contributions from agencies.)