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

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 DelhiNCR 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.