Recording a sharp uptick of 15% in H1 of 2023 compared to the second half of 2022, retail leasing activity continues to be the backbone of India’s commercial real estate (CRE) growth as per the CBRE report christened ‘India Market Monitor Q2 2023’.
The Indian retail leasing momentum continues to set the bar high each year underscoring a 24% year-on-year growth during the first half of 2023. As people started to move out of the pandemic’s dormancy and flocked to shopping malls, high-street retail shops, and office spaces, primary and secondary retail leases soared up.
The Delhi-NCR has witnessed a consistent upshift in retail lease deals. According to the CBRE South Asia’s analysis released in August 2023, Delhi-NCR has registered a 65% YoY increase in retail lease deal closings in the period of January to June 2023.
Also Read: Building Your Dream Home: Key financial considerations for constructing a house in India
Commenting on the same, Saransh Trehan, Managing Director, Trehan Group, said, “Not only big metro cities but Tier 2 and 3 cities are also prominent investment centers for retail brand expansion. We are running a mall named Urban Square Galleria in the city of Alwar in Rajasthan. Currently, we are in talks with several food and F&B brands showing positive interest in occupying spaces in the mall. The Miraj Cinemas is already operational which has many USPs such as a 4-screen multiplex, comfortable recliner seats, and a gaming zone. It is providing a first-time world-class movie experience to avid cine-goers. Malls are entertainment and recreational havens, also emerging as hangout spots attracting thousands of footfalls, especially on weekends. The commercial real estate segment is undergoing a booming phase in Tier 2 and 3 cities with brands viewing it as the next hot locale to expand their footprints.”
In the first half of 2023, the total leasing in Delhi-NCR stood at 0.70 million square feet which are unequivocally big numbers compared to 0.42 million square feet in the corresponding period of 2022. The report also stated that investments have picked up in all types of commercial real estate establishments which include grade malls, high streets, and standalone developments.
Talking about the same, Vikas Garg, Joint Managing Director, Ganga Realty, said, “High-street retail projects are currently at the top of the game if we observe the commercial realty markets of Delhi-NCR. Space paucity in big cities has caused developers to launch high-street projects in residential sectors, which helps them cater to local and hyperlocal consumer markets and mint scores of profits. Eminent food and fashion labels are also looking to expand to new regions and increase their customer base, which has also emboldened developers to launch projects in new and untapped locations.”
With the consistently growing brand leasing activity, the commercial real estate sector is shaping up strongly after the pandemic setback. Its future potential is also bountiful, especially seeing the current numbers and the rapid expansion of commercial developers in new real estate terrains.