Retailers lease 3.3 mn sft across Hyd, top cities in six months: JLL

Hyderabad: The leasing activity by retailers in organised retail centers and key high streets across the top seven cities has experienced a surge, as leasing activity rose to 2.2 million sft in second quarter of 2024 (April-June), compared to 1.1 million sft in the previous quarter (Q1, 2024), a report said.

The top seven cities are Hyderabad, Delhi NCR, Bengaluru, Chennai, Kolkata, Mumbai, and Pune. In its latest report, global real estate service firm, JLL said that there has been a positive momentum in leasing during Q2, 2024 as brands continue to expand to newer micro markets and launch new formats, especially in the value fashion segment. Additionally, there is a noticeable expansion in premium, super premium, and bridge to luxury segments as well. The surge in leasing activity can also be attributed to retailers securing lease in newly completed Grade A projects and expansion in organised high streets and evolving catchments. This positive momentum translated into a robust H1 (January - June) 2024, resulting in cumulative leasing transaction of 3.3 million sft, the firm said.

“The first half of 2024 saw domestic brands taking the lead in retail market, accounting for 80 per cent of the gross leasing. Among the international brands, Europe, Middle East, and Africa (EMEA) based retailers dominated the gross leasing, having more than 50 per cent of the share, while the Americas accounted for 27 per cent and APAC 1 per cent. 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,” said Dr Samantak Das, Chief Economist, India at JLL. The expansion of leading fashion and apparel chains in the value and super value segments, along with the introduction of new formats and brands, has contributed to the Fashion and Apparel segment capturing the highest share (38 per cent) in leasing activity in the first half of 2024.

Notably, the Food and Beverage, and entertainment segments together represented about 30 per cent of the leasing volume in H1, 2024, the report said. Among the top seven cities, Bengaluru, Delhi NCR and Mumbai stood out as the leading cities in terms of gross leasing, accounting for a combined share of 62 per cent in H1, 2024. “Given the positive demographics, stable economy, and the projected completion of high-quality retail developments within the next five years, the outlook for the retail segment is bright. India is likely to remain a key market for global brands looking to expand their store network. We can anticipate the growing popularity of new concepts and development of more destination-oriented shopping malls which act as social meeting places and entertainment hubs,” said Rahul Arora, Head of Office Leasing, JLL.