Retail Leasing Rises by 114 pc YoY, Crossing 3.4M sq ft in 9 Months
Retail Leasing Rises by 114 pc YoY, Crossing 3.4M sq ft in 9 Months

Retail leasing in India has increased by 114 percent year on year between January to September 2022, the supply grew by 102 percent quarter on quarter in Q3 2022.

According to the report ‘India Market Monitor – Q3 2022’, by CBRE South Asia Pvt. Ltd cities such as Hyderabad (29 percent), Delhi-NCR (25 percent), Mumbai (13 percent), and Bangalore (12 percent) together accounted for 79 percent of the overall retail space absorption.  

The fashion and apparel retailers continued to drive the leasing activity with a share of 46 percent in Q3 2022. Other prominent categories that led absorption during Q3 2022 included food and beverage (13 percent) followed by consumer electronics (9 percent).

The report also highlights the quarterly rental growth in select pockets of Delhi-NCR (Green Park 5-7 percent), Ahmedabad (Prahlad Nagar 3-5 percent), and Mumbai (South Mumbai 1-2 percent). The regional share of leasing activity was led by Domestic corporates (73 percent), EMEA corporates (16 percent), and American corporates (9 percent) in Q3 2022.

“Nearly 40 percent YoY growth in leasing activity was observed in the retail sector in Q3 2022 and 114 percent YoY between January to September 2022. Owing to the high growth potential, we expect many international brands to continue to view India as a growth market,” said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.

“Retail leasing is expected to further strengthen during the current festive season. In Q3 2022, the overall retail absorption and supply was 1.1 mn sq. ft. and 0.5 mn sq. ft. respectively. Strong leasing momentum across Hyderabad, Delhi-NCR, Mumbai and Bangalore indicates regained retailer confidence and expansion potential,” commented Ram Chandnani, Managing Director, Advisory and Transactions Services, CBRE India.

Key Highlights


  • Leasing to strengthen further considering the festive season; international and domestic brands to continue to expand
  • Direct-to-consumer brands to lead the fray among demand drivers; entry of more international brands likely through both offline and online channels
  • Tier II, III, and even IV locations to gain traction as retailers look to leverage the spending power of these towns and cities
  • Despite a robust supply pipeline, the lack of ready quality supply, especially in prime locations, likely to impact retailer sentiments


 Steady capital inflows were witnessed in real estate

  • Total capital inflows in 9 months of 2022 were up by nearly 10 percent YoY ($5.3 billion)
  • Overall capital inflows in Q3 2022 were up by 7 percent YoY ($1.4 billion)
  • Mumbai, Bangalore, and Hyderabad dominated total investment quantum in Q3 2022, with a cumulative share of about 66 percent
  • Land/development sites dominated investments with a share of 51percent; followed by built-up office assets (49 percent)
  • Institutional investors led investment activity with a share of nearly 59 percent, followed by developers (19 percent)
  • Domestic investors dominated the investment volume in Q3 2022 with a share of 51 percent. Foreign investors garnered the remaining share. Among them, investors from Singapore (24 percent), followed by Abu Dhabi (14 percent) pumped in major capital in India
  • Around 38 percent of the total capital inflows in site/land acquisitions during Q3 2022 were deployed for residential developments, while 30 percent was committed to the office sector


  • YoY uptick of 5-10 percent likely in 2022; cumulative investments could cross the $6-billion mark 
  • Churn in institutional shareholders of existing REITs anticipated as investors look to partially book profits 
  • Platform-level deals between foreign investors and domestic property companies to gain momentum; to drive the next phase of greenfield asset development
  • Monetary tightening measures to increase financing costs, thereby putting pressure on margins
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