With its share rising to 39 per cent of overall leasing activities, the fashion and apparel segmentdominated retail leasing in Indiaduring H1, FY24.

As per a report by CBRE South Asia, retail leasing activities in India soared to a five-year high in the first half of the current year.

From Jan-June’24, retail leasing increased to 3.1 million sq ft. across eight cities compared to the H1 period in the last five years. Retail leasing activities in the country grew at the rate of 7 per cent during the period.

The absorption was led by Bengaluru, followed by Chennai and Delhi-NCR, which accounted for nearly 59 per cent of the total leasing.

In the coming quarters, the influx of investment-grade mall supply will influence primary leasing trends with leading malls across key cities continuing to witness strong demand for secondary spaces.

Indian cities are also attracting global retailer from Switzerland, America and Japan looking to expand their presence in India, the report highlights. In H1, FY23, about 0.5 million sq ft. of retail space was added across Tier-Ii cities, as per the report. Tier-II cities witnessed an overall space take-up of 0.4 million sqft in H1, with the absorption dominated by Indore and Kochi, accounting for a joint share of 56 per cent, followed by Lucknow and Chandigarh, each with a 17 per cent share.

Ram Chandnani, Managing Director, Advisory and Transactions Services, CBRE India affirms, with a growing number of direct-to-consumer (D2C) brands recognising the importance of establishing a physical presence, the ongoing introduction of quality supply is expected to continue stimulating an uptick in overall space absorption in the coming quarters.