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Retail leasing remains strong in 2024, robust supply pipeline expected in 2025: CBRE

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The report reveals that retail leasing activity remained robust in 2024, with approximately 6.4 million sq. ft.

New Delhi: Real estate consulting firm CBRE South Asia Pvt. Ltd has released its latest report, India Retail Figures H2 2024, highlighting key trends and insights into the country’s retail real estate sector. The report reveals that retail leasing activity remained robust in 2024, with approximately 6.4 million sq. ft. of space leased across India’s top eight cities, despite limited new supply. A strong supply pipeline is anticipated in 2025, with 5-6 million sq. ft. of Grade A malls expected to commence operations in key cities such as Bengaluru, Hyderabad, Delhi-NCR, and Mumbai.

Key Highlights from the Report
  • Retail Leasing Activity in 2024: Retail leasing touched 6.4 million sq. ft., with fashion and apparel leading the charge, accounting for ~37% of total space take-up in H2 2024. Homeware and department stores (~13%) and food and beverage (~12%) were also significant contributors.
  • Growth in Tier-I Cities: Bengaluru, Hyderabad, and Delhi-NCR collectively accounted for ~58% of the total retail space absorption in H2 2024.
  • D2C Sector Expansion: The direct-to-consumer (D2C) sector saw strong growth, contributing ~7% of total leasing activity in 2024, with 0.6 million sq. ft. of space leased, particularly in fashion, apparel, and homeware categories.
  • Limited New Supply in 2024: Approximately 0.7 million sq. ft. of Grade A mall space was added during H2 2024, with some project completions deferred to 2025.
2025 Retail Outlook
  1. Sustained Leasing Momentum: Leasing activity is expected to remain steady, driven by strong demand for mid-range fashion, value fashion, athleisure, and jewellery.
  2. Supply Growth: A rebound in retail supply is expected in 2025, with 5-6 million sq. ft. of Grade A malls likely to open across tier-I cities.
  3. Foreign Brand Entries: Strategic partnerships will continue to facilitate foreign brands entering the Indian market. Recent debuts include Carrefour, AMIRI, Aquazzura, and Maison Margiela, among others.
  4. Experiential Retail Evolution: Retail spaces are transforming into destinations for emotional engagement and storytelling, blending shopping, dining, and entertainment for a holistic consumer experience.
  5. D2C and Quick Commerce Growth: The D2C sector will remain a key focus, with brands expanding their omnichannel presence. Quick commerce platforms are expected to grow further, driven by rising demand for instant delivery and broader product offerings.

“India’s retail landscape is set for significant growth in 2025. With a robust supply pipeline and continued demand from key sectors, retail leasing is poised to remain strong. Retail spaces are evolving to offer a seamless mix of shopping, dining, and entertainment, ensuring a dynamic and transformative year ahead,” said Anshuman Magazine, Chairman & CEO, CBRE India, Southeast Asia, Middle East & Africa.

Operating in India since 1994, CBRE provides a wide range of real estate solutions, including strategic consulting, property management, investment management, and leasing services.

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