Retail leasing doubled to 3.2 million sq ft in 2021
Real Estate

Retail leasing doubled to 3.2 million sq ft in 2021

According to Coldwell Banker Richard Ellis (CBRE), retail leasing across Grade-A malls and high streets increased to double to 3.2 million sq ft in 2021, compared to 1.5 mn sq ft in 2020 after getting hit by the Covid-19 lockdowns.

The fourth quarter (Q4) of 2021 witnessed most leasing activity increase by about 250% quarter-on-quarter (QoQ) to 2.1 million sq ft across Grade-A malls and high streets.

According to a report, Bangalore and Mumbai dominated the annual and quarterly leasing activity, accounting for 55% and 70% of the leasing space taken up in 2021 and Q4 2021, respectively.

In 2021, the investment-grade mall supply grew by 124% year-on-year (YoY) to 4.1 million sq ft, and its completion in Q4 2021 reached 3.4 million sq ft.

Some major demand drivers were fashion and apparel, with 28% growth in 2021 and 29% in Q4 2021, homeware and departmental stores 9% in 2021 and 4% in Q4 2021, supermarkets 14% growth in 2021 and 13% in Q4 2021, and Food and Beverage Services 8% in 2021 and 8% in Q4 2021.

The warehousing sector has also witnessed significant growth and will continue its momentum. Its leasing activity grew by 57% YoY to over 30 million sq ft in 2021. The warehousing sector is expected to remain strong in 2022, followed by growth in e-commerce and 3PL firms. The overall leasing is expected to grow by 35 million sq ft in 2022 and supply to over 30 million sq ft.

The warehousing space in Tier-II cities is likely to grow and continue to gain momentum, followed by the growth of omnichannel retail and increasing urbanisation.

As per CBRE, office leasing activity expects to grow in 2022 with pent-up and expansionary or consolidation-led leasing. The overall leasing is expected to increase over 40 million sq ft in 2022 and supply to over 50 million sq ft.

The residential segment also expects a positive sales momentum in 2022 with a strong pipeline project amidst robust demand that might support an appreciation in asset prices.

Mid-end and affordable housing sector expects to continue to drive sales, and the premium housing segment could witness more traction.

Housing sales increased by 70% YoY in 2021 to 2 lakh and quarterly housing sales increased by 23% in Q4 2021.

Pune, Mumbai, Delhi-NCR and Hyderabad accounted for over 80% of housing sales across seven major cities in 2021.

Image Source

Also read: Kerala govt to lease 2.35 acres of land for MLCP development

According to Coldwell Banker Richard Ellis (CBRE), retail leasing across Grade-A malls and high streets increased to double to 3.2 million sq ft in 2021, compared to 1.5 mn sq ft in 2020 after getting hit by the Covid-19 lockdowns. The fourth quarter (Q4) of 2021 witnessed most leasing activity increase by about 250% quarter-on-quarter (QoQ) to 2.1 million sq ft across Grade-A malls and high streets. According to a report, Bangalore and Mumbai dominated the annual and quarterly leasing activity, accounting for 55% and 70% of the leasing space taken up in 2021 and Q4 2021, respectively. In 2021, the investment-grade mall supply grew by 124% year-on-year (YoY) to 4.1 million sq ft, and its completion in Q4 2021 reached 3.4 million sq ft. Some major demand drivers were fashion and apparel, with 28% growth in 2021 and 29% in Q4 2021, homeware and departmental stores 9% in 2021 and 4% in Q4 2021, supermarkets 14% growth in 2021 and 13% in Q4 2021, and Food and Beverage Services 8% in 2021 and 8% in Q4 2021. The warehousing sector has also witnessed significant growth and will continue its momentum. Its leasing activity grew by 57% YoY to over 30 million sq ft in 2021. The warehousing sector is expected to remain strong in 2022, followed by growth in e-commerce and 3PL firms. The overall leasing is expected to grow by 35 million sq ft in 2022 and supply to over 30 million sq ft. The warehousing space in Tier-II cities is likely to grow and continue to gain momentum, followed by the growth of omnichannel retail and increasing urbanisation. As per CBRE, office leasing activity expects to grow in 2022 with pent-up and expansionary or consolidation-led leasing. The overall leasing is expected to increase over 40 million sq ft in 2022 and supply to over 50 million sq ft. The residential segment also expects a positive sales momentum in 2022 with a strong pipeline project amidst robust demand that might support an appreciation in asset prices. Mid-end and affordable housing sector expects to continue to drive sales, and the premium housing segment could witness more traction. Housing sales increased by 70% YoY in 2021 to 2 lakh and quarterly housing sales increased by 23% in Q4 2021. Pune, Mumbai, Delhi-NCR and Hyderabad accounted for over 80% of housing sales across seven major cities in 2021. Image Source Also read: Kerala govt to lease 2.35 acres of land for MLCP development

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