JLL report highlights fashion and F&B categories as major contributors
Leasing activity by retailers in organised retail centres and key high streets across the top seven cities in India surged by over 100 per cent in the second quarter (Q2) of 2024, according to a report by real estate firm JLL.
Despite a recent slowdown in consumption growth for some discretionary retail categories, retailers have strategically responded by closing unviable stores and expanding into new markets, the report highlighted.
Leasing activity rose to 2.2 million square feet, marking a significant 100 per cent increase compared to the previous quarter. This resulted in a robust 3.3 million square feet of cumulative leasing transactions in the first half of 2024.
JLL attributes this surge to retailers securing leases in newly completed ‘Grade A’ projects launched by established developers, as well as expanding into organised high streets and evolving catchments.
The fashion and apparel segment, particularly in the value and super value categories, led the leasing activity in 2024, capturing the highest share at 38 per cent. The mid-segment dominated this category, accounting for 56 per cent of the activity. Additionally, the F&B and entertainment segments together represented approximately 30 per cent of the leasing volume in H1 2024, transforming shopping malls into vibrant social and entertainment hubs.
Highlighting factors such as positive demographics, a stable economy and timely project completions, the JLL report anticipates a strong outlook for India’s retail segment.
