CBRE: Retail Leasing up 24%

NT Correspondent

Bengaluru: Retail leasing witnessed a 24% yearon-year (yoy) growth in January-June 2023 period and 15% increae compared to July-December 2022 period, says India Market Monitor Q2-2023 report by leading real estate consulting firm, CBRE South Asia Pvt. Ltd.

The report released on July 25, says, total leasing during Jan-June 2023 period stood at 2.87 mn.sq.ft. compared to 2.31 mn.sq.ft. Bengaluru, DelhiNCR, and Ahmedabad collectively accounted for a cumulative share of 65% in leasing activity during the six month period.

The period also recorded a 148% yoy increase in supply. Totally supply in Jan-June 2023 stood at 1.09 mn.sq.ft compared to 0.44.mn.sq. ft., the report added.

The report said, the top eight cities saw an 8% growth in mall completion on a on a half-yearly basis.

Ahmedabad led the growth in supply addition with a 73% share, followed by Delhi-NCR at 20%. Given below is a recap of the trends witnessed in the real estate space in H1-2023:

• Office: Despite current macroeconomic headwinds, the sector recorded robust leasing activity in H1-2023; sound market fundamentals are likely to ensure that it remains resilient in H2-2023.
• Industrial & Logistics: Continued leasing momentum in the sector is likely to bring overall space takeup at par with the 2022 level; growing institutional investor interest could spur the sector to greater heights.
• Retail: Leasing momentum continued in Q2-2023; space take-up is likely to strengthen further on the back of incoming supply and the upcoming festive season.
• Residential: Some rationalization from the 2022 peak levels was witnessed in H1 2023; however, H2 2023 is expected to be stronger due to a healthy supply pipeline, approaching festive season and stabilizing mortgage rates.
• Investments: Investment activity recovered in Q2-2023 after a muted first quarter.Core and opportunistic bets dominated capital flows.