India retail leasing surges 47% YoY in 2023 as new malls drive absorption: CBRE
CBRE India data shows 2023 retail leasing up 47% year-on-year, with new malls contributing 30% of absorption. Mumbai (1.0M sq ft) and Pune (0.8M sq ft) hit five-year highs. Q1 leasing touched 1.5M sq ft. Report also flags 55% small-town online shopping preference and 60% of international brands expanding in H2 2022.
What happened
CBRE India · CBRE report shows India retail leasing rose 47% YoY in 2023, driven by new malls; Mumbai and Pune hit five-year highs. Small-town online preference
Key facts
- 47% YoY leasing increase 2023
- 30% of absorption from new malls
- Mumbai 1.0M sq ft
- Pune 0.8M sq ft
- Q1 leasing 1.5M sq ft
- 55% small-town online shopping
- 60% international brands expanded H2 2022
Why this matters
With 60% of international brands expanding and record leasing absorption, this is an opportune window to secure prime mall footprints or partner with expanding global entrants.
What to watch
- Q1-Q2 2024 CBRE/JLL leasing volume prints vs 1.5M sq ft baseline
- Prime mall vacancy rates and rental growth in Mumbai/Pune/Bengaluru
- New mall completion timelines and delivery slippage
- International brand India entry/expansion announcements
- Consumer spending and discretionary demand indicators
- International brands (fashion, F&B, beauty) accelerate store rollouts into Q2-Q3 pipeline malls
- Developers fast-track Grade-A mall launches in Mumbai, Pune, Hyderabad to capture demand
- Landlords push rent escalations and revenue-share terms as vacancy tightens
- Domestic retailers expand omnichannel footprint to capture Tier-2/3 online demand