Commercial Real Estate Booms As Retail Leasing Doubles In January-March 2023
The retail leasing in Delhi-NCR rose from 0.07 million sqft to 0.39 million sqft over the period of a year.
The increase in leasing activity is a clear sign of the growing demand for commercial real estate and a strong indication of the industry’s resilience in the face of challenges
The real estate sector in India has witnessed a great bounce as the retail space leasings soar high. According to a CBRE report, retail space leasings have increased by almost 130 per cent in the year-on-year dealings. With the transactions doubling and reaching 1.5 million sqft in the first quarter of 2023, January-March, commercial real estate has made a great debut in the year with massive investments. The retail leasing in Delhi-NCR rose from 0.07 million sqft to 0.39 million sqft over the period of a year.
Siddharth Katyal, group director of Omaxe, said, “The increase in leasing activity is a clear sign of the growing demand for commercial real estate and a strong indication of the industry’s resilience in the face of challenges. It is exciting to be a part of this growth trajectory and to continue developing retail properties that meet the needs of both retailers and consumers. Organised retail is the foremost preference of buyers as they show a keen interest in shopping from spaces that offer a quick glance of the offerings.”
He added that in this aspect, malls or well-built shopping destinations are gaining popularity. “We believe that the future of retail is bright, and we are committed to creating spaces that not only cater to the changing needs of the industry but also enhance the overall shopping experience.”
Aman Sharma, director of Spaze Group, said, “We are thrilled to see the recent surge in retail space leasing. The strong leasing activity in Q1 clearly indicates the growing confidence among retailers in the post-pandemic market. It’s an exciting time for the industry. Retailers are eager to get back to business and expand their footprint. We’re seeing a lot of interest from both national and local brands. We look forward to building on this momentum and contributing to the continued success of the retail real estate market.”
Delhi-NCR, Mumbai, Hyderabad and Chennai are the significant regions that witnessed the rise in sales. Nonetheless, the overall sentiment in the industry is one of optimism and growth. The commercial real estate industry is abuzz with news of the recent surge in retail space leasing.
The surge in leasing activity in Q1 is a testament to the hard work and dedication of developers in the realty hotspots and the strong relationships built with the investors. This represents a major turnaround from the pandemic-induced slowdown in the retail sector. The major share in retail leasing is held by the fashion and apparel segment, homeware and department stores, and F&B (food and beverages) segment.
Sudhanshu Rai, director of Ocean Infraheights, said, “The rise in leasing activity is an unmistakable indicator of the rising demand for commercial real estate and a testament to the sector’s resiliency in the face of difficulties. Being a part of this growth trajectory and continuing to build retail buildings that satisfy the demands of both businesses and customers is thrilling. We are dedicated to designing spaces that not only meet the evolving needs of the industry but also improve the overall shopping experience since we believe that the retail sector has a bright future.”
Ajendra Singh, VP (sales and marketing) of Spectrum Metro, said, “We are ecstatic with the recent increase in the leasing of shop space. The robust leasing activity in Q1 shows that retailers are becoming increasingly confident in the post-pandemic environment. The industry is in an interesting phase right now. Retailers are anxious to resume operations and increase their footprint.”
He added that both national and local brands are showing a lot of interest. “We look forward to capitalising on this momentum and assisting in the retail real estate market’s future progress.”
While the increase in leasing activity is encouraging, it’s important to note that the retail landscape is evolving. Landlords and retailers are adapting to changing consumer preferences and staying ahead of the curve. The surge in leasing activity is a clear indication that the retail sector is bouncing back. It would be exciting to witness a similar trend in the real estate sector throughout the rest of the year.