Retail leasing in India increased 114 per cent year-on-year during the period January-September 2022, reports News18.

The supply grew 102 per cent in the third quarter and Hyderabad (29 per cent), Delhi-NCR (25 per cent), Mumbai (13 per cent) and Bangalore (12 per cent) together had 79 per cent of the overall retail space absorption, states a report by CBRE South Asia.

In the third quarter of 2022, fashion and apparel retailers were the pivots of the leasing activity with a share of 46 per cent. Other prominent categories are food & beverage (13 per cent), followed by consumer electronics (9 per cent), CBRE said in its report titled ‘India Market Monitor – Q3 2022’.

Quarterly rental growth in select pockets of Delhi-NCR (Green Park 5-7 per cent), Ahmedabad (Prahlad Nagar 3-5 per cent) and Mumbai (South Mumbai 1-2 per cent) was significant.

In Q3 2022, regional share of leasing activity was helmed by domestic corporates (73 per cent), EMEA corporates (16 per cent) and American corporates (9 per cent).

Ram Chandnani, managing director (advisory & transactions services) of CBRE India, said, “Retail leasing is expected to further strengthen during the current festive season. In Q3 2022, the overall retail absorption and supply was 1.1 million sqft and 0.5 million sqft, respectively. Strong leasing momentum across Hyderabad, Delhi-NCR, Mumbai and Bengaluru indicates regained retailer confidence and expansion potential."

“Institutional investors led investment activity with a share of nearly 59 per cent, followed by developers (19 per cent). Domestic investors dominated the investment volume in Q3 2022 with a share of 51 per cent. Foreign investors garnered the remaining share. Among them, investors from Singapore (24 per cent), followed by Abu Dhabi (14 per cent) pumped in major capital in India," the report added.