C&W report: demand for retail space in shopping malls and commercial streets in eight cities increased by nearly 5% in the first nine months

New Delhi, Nov 30 (PTI) Retail space leasing in malls and prominent shopping streets in eight major cities grew by nearly 5% from January to September this year, according to Cushman & Wakefield data.

Data from real estate consultancy Cushman & Wakefield shows that from January to September 2024, 5.53 million square feet of retail space was absorbed or leased in Grade-A shopping malls and major commercial streets in the top eight cities, compared with 5.53 million square feet in the same period. 5.29 million square feet. from the previous year.

The eight cities are: Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad.

Saurabh Shatdal, managing director (capital markets) and head of India retail at Cushman & Wakefield, said: “Growth in retail real estate in India remains unchanged as seen from strong leasing numbers in malls and high streets”.

Increased discretionary spending and changing consumer preferences are driving demand for prime retail space, he added.

However, Shaddar said India needs to accelerate the development of prime retail space in major cities to unlock greater transaction volumes as it remains attractive to global retailers looking to expand their operations.

Commenting on the figures, Akash Nagpal, vice president of leasing at real estate company Trehan Iris, said the increase reflected a strong rebound and new confidence in the retail sector.

“As consumer behavior evolves post-pandemic, there is a clear increase in demand for dynamic, experiential spaces. Therefore, our approach is to create retail destinations that not only meet traditional retail needs, but also promote community engagement and provide experiences that cannot be replicated online of.”

Sameer Verma, general manager, Lulu Mall, Lucknow, said the steady growth in leasing activity in malls in major cities highlights the strong recovery and expansion of the retail sector.

“This positive trend is in line with our vision to create world-class retail experiences that meet evolving consumer preferences while fostering a thriving ecosystem for our retail partners,” he added.

According to Cushman & Wakefield, leasing of high street retail space increased 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.

However, retail space absorption in malls fell from 1.85 million square feet to 1.72 million square feet.

In the city, demand for retail space in Hyderabad’s prominent high street locations was strong with 1.72 million sq ft of leasing area during January-September 2024 as compared to 1.6 million sq ft in the same period last year.