According to Cushman & Wakefield, there was a 15% annual increase in the leasing of retail spaces in shopping malls during the April-June period, totalling 6.12 lakh square feet across eight major cities. The surge was attributed to heightened demand from retailers. Similarly, their data indicated a 4% annual rise in demand for retail space on major high streets in these cities, amounting to nearly 14 lakh square feet in the second quarter of the 2024 calendar year.
The leasing activity in shopping malls reportedly climbed from 5,33,078 square feet to 6,12,396 square feet between April and June 2024 compared to the same period last year. Meanwhile, high street locations experienced a 4% increase in leasing, expanding from 13,31,705 square feet to 13,89,768 square feet during the review period.
The data encompassed various types of shopping malls ? Grade A and Grade B ? as well as prominent mainstreets across Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru,
Saurabh Shatdal, Head Retail and Managing Director, Capital Markets at Cushman & Wakefield, commented on the findings, stating that the second quarter of 2024 witnessed robust demand for both Grade A malls and high street retail spaces. He highlighted that this growth in both formats reflects the dynamic nature of India's retail sector.
He also noted that while high street rental rates have notably increased, the upcoming supply of 4.5 million square feet of Grade A mall space could potentially stabilize rental costs in the near to medium term, as the balance between demand and supply adjusts.
