Demand for retail space in malls, high streets in top 8 cities up nearly 5% in Jan-Sep: C&W report

Leasing of retail space in shopping malls and prominent high streets rose nearly 5 per cent during January-September this year across eight major cities, according to Cushman & Wakefield.

Real estate consultant Cushman & Wakefield data showed that the absorption or leasing of retail space in Grade-A malls and main high streets across the top eight cities stood at 5.53 million square feet during January-September 2024 against 5.29 million square feet in the corresponding period of the preceding year.

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

Saurabh Shatdal, Managing Director (Capital Markets) and Head-Retail-India, Cushman & Wakefield, said, “India’s retail real estate growth remains intact as can be observed from the strong leasing numbers, both in malls and main streets”.

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Increasing discretionary spending and evolving consumer preferences are driving demand for premium retail spaces, he added.

Shatdal, however, said India would need to accelerate the development of quality retail spaces across major cities to unlock even greater transaction volumes, as it remains highly attractive to global retailers looking to expand their footprint.

Commenting on the data, Akash Nagpal, VP-Leasing of realty firm Trehan Iris, said this growth reflects a strong rebound and a renewed sense of confidence in the retail sector.

“With consumer behaviour evolving post-pandemic, there’s a clear demand for dynamic, experiential spaces. Hence, our approach is to create retail destinations that not only cater to traditional retail needs but also promote community engagement, offering experiences that can’t be replicated online.”

Sameer Verma, General Manager at Lulu Mall, Lucknow, said the steady increase in mall leasing activity across major cities underscores the robust recovery and expansion of the retail sector.

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“This positive trend aligns with our vision of creating world-class retail experiences that cater to evolving consumer preferences while fostering a thriving ecosystem for our retail partners,” he added.

According to Cushman & Wakefield data, the leasing of retail space in high streets increased to 3.82 million square feet during January-September this year from 3.44 million square feet in the year-ago period.

However, the absorption of retail space in shopping malls declined to 1.72 million square feet from 1.85 million square feet.

Among cities, Hyderabad’s prominent high-street locations saw strong demand for retail space, with the leasing of 1.72 million square feet during January-September 2024 against 1.60 million square feet in the year-ago period.