Foreign Brands All Set To Enter India, Retail Leasing Rises 24 per cent

In the backdrop of increasing retail leasing in India, and recognising the immense potential of the consumer market in the country, many foreign brands are set to enter India, CBRE South Asia said in a statement. According to the official data, India witnessed 24 per cent year on year (YoY) growth in retail leasing in the Jan-June’23 period, and a 15 per cent increase compared to Jul-Dec’22 period.

Recognizing the immense potential of the consumer market in India, international brands continued to reinforce their presence in the country. Apple launched its first two new stores in Mumbai and Delhi-NCR and UK based coffee and sandwich chain PretA Manger also opened stores in Mumbai and Delhi-NCR. Canadian coffee brand Tim Hortons which debuted in India last year, strengthened its presence in Delhi-NCR and Punjab and entered the Mumbai market this year.

“European luxury brand Balenciaga is set to open its first brick-and-mortar store in Delhi-NCR through its partnership with Reliance Brands. Additionally, Galeries Lafayette, a leading shopping centre based in Paris, is also set to establish its presence in India by opening two stores in Mumbai and Delhi-NCR in collaboration with Aditya Birla Fashion and Retail Ltd,” the statement read.

Delhi-NCR Retail Leasing Record

Meanwhile, Delhi-NCR recorded an increase in retail leasing by 65 per cent Y-o-Y across investment-grade malls, high streets and standalone developments in Jan-June’23. During this period, among the industry segments in Delhi-NCR, fashion and apparel players drove leasing with a share of about 47 per cent, followed by luxury (13 per cent), and food & beverage (8 per cent).

Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East & Africa, CBRE said, “Despite global headwinds and looming uncertainty, India is poised for strong economic growth and sustained recovery during the endemic stage. Retailers have expressed positive leasing sentiments, indicating their strong interest in establishing new setups, expanding operations, and upgrading existing stores.”

“The leasing performance displayed positive trends on a half-yearly basis as well, exhibiting a 15% rise in space take-up compared to 2.49 million sq. ft. of leasing recorded during H2 2022.  Going forward, the anticipated growth in mall supply coupled with encouraging consumer spending trends, especially during the festive season, is expected to further augment the sentiment for expansion among both international and domestic retailers who are well positioned in the market,” he added.

Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, said, “The retail leasing market presented notable trends and opportunities in the first half of the year. Retail leasing is expected to touch 5.5 – 6.0 million sq. ft. in 2023, the highest level after the 2019 peak of 6.8 million sq. ft. It is expected that primary leasing in newly completed malls would remain the key driver of retail space demand in 2023.”