India Retail Figures H1 2024

Notwithstanding persistent inflation, total consumer spending and retail sales are expected to witness growth of 5% and 9% Y-o-Y*, respectively, by the end of 2024. This was reflective in the strong retail leasing sentiment, which despite limited fresh supply addition, grew at 7% Y-o-Y. 

• Retail leasing witnessed a growth of 7% Y-o-Y to touch 3.1 million sq. ft., compared to H1 2023.
• Bengaluru drove leasing activity, followed by Chennai and Delhi-NCR, cumulatively accounting for nearly 59% of the total absorption.
• Fashion and apparel retailers continued to dominate space take-up with a 39% share, while other prominent categories included entertainment (~13%) and homeware and department stores (~11%).
• Sustained demand for quality retail space resulted in an increase in rental values on a half-yearly basis in select micro-markets across most cities and retail formats.
• Supply addition during H1 2024 stood at 0.5 million sq. ft., as a sole development in Hyderabad became operational. However, we expect supply addition to pick pace in H2 2024; which in turn is expected to spur primary leasing.
• Going forward, we expect leasing by D2C brands to pick pace, while space take-up by luxury brands will continue to gather steam. Also, newer retail formats such as neighbourhood malls will gain greater acceptance, while transit retail across various formats will also start emerging stronger.

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* Oxford Economics and EMIS