India Retail Figures H2 2024

Sustained retail leasing activity, reflecting positive expansionary sentiment, continued throughout the second half of 2024.

Below are a few broad trends observed: 

• India’s tier-I cities witnessed retail leasing activity of ~6.4 million sq. ft. in CY 2024, with ~3.2 million sq. ft. absorbed during the July-December 2024 period.
• Bengaluru drove the retail space take-up in H2 2024, followed by Hyderabad and Delhi-NCR  — these three cities cumulatively accounted for ~58% of the total retail space absorption in the July-December period.
• Fashion and apparel retailers continued to dominate leasing activity with a ~37% share in H2 2024, while other prominent categories included entertainment (~14%) and homeware and department stores (~13%).
• 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.
• Adjustments to project timelines, with some completions deferred to 2025, resulted in ~0.7 million sq. ft. of Grade A mall supply during H2 2024. However, a robust supply pipeline is anticipated in 2025, with investment-grade assets expected to commence operations in a few tier-I cities.
• The direct-to-consumer (D2C) sector witnessed strong growth, contributing ~7% to the overall retail leasing activity in CY 2024.

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