Cushman & Wakefield reports robust growth in both shopping malls and high street locations during Q2 2024
Leasing of retail spaces in shopping malls rose 15 per cent annually during the April-June period to 6.12 lakh square feet across eight major cities, driven by increased demand from retailers, according to a report by PTI, citing Cushman & Wakefield. Data from the real estate consultant revealed that the demand for retail space on major high streets in these cities increased by 4 per cent annually, reaching nearly 14 lakh square feet in Q2 2024.
The report highlighted that leasing activities in shopping malls grew to 6,12,396 square feet in April-June 2024, up from 5,33,078 square feet in the same period last year. High street locations saw a 4 per cent growth in leasing, rising to 13,89,768 square feet from 13,31,705 square feet year-on-year.
The leasing data includes all types of shopping malls, both Grade A and Grade B, as well as all prominent main streets in Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad, as per PTI.
Saurabh Shatdal, Head of Retail and Managing Director of Capital Markets, Cushman & Wakefield commented, “The second quarter of 2024 was marked by a strong demand for both Grade A malls and high street retail. The growth in both formats underscores the vibrancy of India’s retail landscape,” PTI reported.
While high street rental growth has seen a notable increase, Shatdal noted that the upcoming supply of 4.5 million (45 lakh) square feet of Grade A mall space might stabilise rental costs in the short to medium term as demand-supply dynamics shift. He also anticipates continued healthy activity on mainstreets.
The report highlighted the dominance of domestic brands, which accounted for 53 per cent of leasing volume, along with the strong performance of fashion and food and beverage (F&B) sectors, reflecting evolving retail preferences in India.
Mainstreet retail leasing continues to dominate due to limited new mall openings and strong demand for high-quality retail spaces. Retailers are increasingly focusing on prominent main streets across India, with emerging clusters forming around residential and commercial hubs.
“This trend is reflected in leasing activity with high street leases accounting for 70 per cent of total leases in Q2 (April-June) 2024, compared to 30 per cent for mall leases,” Cushman & Wakefield stated, as reported by PTI. The rental growth across prominent main streets in Q2 2024 further underscores their growing appeal. Cities like Kolkata, Bengaluru, Hyderabad and Mumbai have all experienced significant year-on-year rental increases, demonstrating the strong demand and potential for high-street retail in the country.
