Retail sector leasing grows 130% year-on-year to 1.5 million sq ft in Jan-Mar 2023: Report, ET RealEstate

June 24, 2023

<p>Representative Image</p>
Representative Image

NEW DELHI: Retail sector leasing grew by 130% year-on-year to 1.5 million sq ft in Jan-Mar 2023. Supply during this period increased by 474% year-on-year to 1.1 million sq ft, according to a recent report by CBRE South Asia, a real estate consulting firm.

During the Jan-Mar 2023 period, Ahmedabad led the absorption with a 27% share, followed by Delhi-NCR at 26%, and Bengaluru and Chennai at 14% each. The cumulative leasing share of the three cities in total leasing stood at 81%. Ahmedabad saw the highest supply with a 73% share during Jan-Mar 2023, followed by Delhi-NCR at 20%.

Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “Retail supply this year is expected to surpass 2022 levels owing to pent-up supply addition, with several investment-grade projects launched in the past two years set to become operational in 2023.”

According to the report, the Fashion & Apparel segment had a majority share in total leasing activity at 31%, followed by Homeware and Department Stores at 19%, F&B at 11%, Luxury at 8%, and Consumer Electronics at 5%.

Commercial real estate absorption was recorded at 12.6 million sq ft in Q1 2023, 9% year-on-year growth in leasing while 11.6 million sq ft supply was recorded in Q1 2023, witnessing a 31% year-on-year jump, according to the report.

For commercial real estate, BFSI (22%) and Flexible Space Operators (22%) drove leasing activity in Q1 2023. According to CBRE, robust pipeline of quality assets will ensure steady pace of building completions; yet, vacancy rates will remain range bound due to sustained leasing activity.

  • Published On May 2, 2023 at 03:00 PM IST

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