Retail Leasing in India Doubles in 2024: JLL Report
Leasing activity by retailers in organized retail centers and key high streets across the top seven cities in India surged by over 100% in the second quarter (Q2) of 2024, according to a report by real estate firm JLL.
Despite a recent slowdown in consumption growth for certain discretionary retail categories, retailers have strategically responded by closing unviable stores and expanding into new markets. The leasing activity rose to 2.2 million sq. ft., marking a significant 100% increase compared to the previous quarter, resulting in a robust 3.3 million sq. ft. of cumulative leasing transactions in H1 2024.
JLL attributes this surge to retailers securing leases in newly completed Grade A projects launched by established developers and expanding into organized high streets and evolving catchments. The fashion and apparel segment, particularly in the value and super value segments, led the leasing activity during 2024, capturing the highest share in leasing at 38%. The mid-segment dominated this category, accounting for 56% of the activity. Additionally, the F&B and entertainment segments together represented approximately 30% of the leasing volume in H1 2024, transforming shopping malls into vibrant social and entertainment hubs.
Underscoring factors such as positive demographics, a stable economy, and the project completion time, the JLL report expected a strong outlook for India’s retail segment. “The first half of 2024 saw domestic brands taking the lead in the retail market, accounting for an impressive 80% of the gross leasing. Among the international brands, Europe, the Middle East, and Africa (EMEA)-based retailers dominated the gross leasing, having more than 50% of the share, while the Americas accounted for 27% and APAC for 21%,” said Samantak Das, Chief Economist and Head of Research & REIS, India, at JLL.
Additionally, India’s appeal as a retail destination was strengthened with the opening of nine international brands’ maiden stores, primarily focusing on expansion in Delhi NCR and Mumbai.
Doubts Revealed
Retail Leasing -: Retail leasing means renting out spaces in shopping malls or other commercial areas to stores and businesses.
JLL -: JLL stands for Jones Lang LaSalle, a company that provides real estate services and advice.
Q2 2024 -: Q2 2024 means the second quarter of the year 2024, which includes the months of April, May, and June.
sq. ft. -: Sq. ft. stands for square feet, a unit of area measurement used to describe the size of a space.
Fashion and Apparel Segment -: This refers to businesses that sell clothes and fashion accessories.
Domestic Brands -: Domestic brands are companies that originate and operate within India.
International Brands -: International brands are companies that come from other countries outside India.
EMEA -: EMEA stands for Europe, the Middle East, and Africa, regions from where some international brands come.
The Americas -: The Americas include North, Central, and South America, regions from where some international brands come.
APAC -: APAC stands for Asia-Pacific, a region that includes countries in Asia and the Pacific Ocean area.
Delhi NCR -: Delhi NCR stands for Delhi National Capital Region, which includes Delhi and nearby cities like Gurgaon and Noida.
Positive Demographics -: Positive demographics mean having a good mix of people in terms of age, income, and other factors that help businesses grow.
Stable Economy -: A stable economy means that the country’s financial system is strong and not facing big problems, which helps businesses do well.