Recently, a report revealed that changes in preference and dynamics led to a surge in retail leasing during the first quarter of this year.
CBRE South East Asia released its Q1, 2023 report named, ‘India Market Monitor – Q1, 2023’. The report elaborated on findings based on the retail segment of Indian real estate.
During January to March 2023, retail leasing surged from 130% Year on Year basis to 1.5 mn.sq.ft. Interestingly, supply also increased from 474% YoY to 1.1 mn.sq.ft. in 2023.
In the first quarter of 2023, Ahmedabad recorded retail space absorption of 27%, Delhi-NCR region stood second with 26%, followed by Bengaluru and Chennai at 14% respectively.
The report also states that Ahmedabad recorded a maximum supply of 73% in Q1, 2023.
Anshuman Magzine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE said, “Retail supply this year is expected to surpass 2022 levels owning to pent-up supply addition, with several investment-grade projects launched in the past two decades set to become operational in 2023. This would give a fillip to primary leasing, which is likely to be the main demand driver for retail space in 2023.”
Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE said, “We believe that realtors will seek space beyond conventional malls and high streets to diversify their location plans, thereby enabling supply chain modifications and facilitating customers to shop for any product at any time. Furthermore, omnichannel initiatives such as metaverse and social commerce will witness greater traction.”
The year 2023, witnessed a persistent absorption activity as absorption accounted for 12.6 million sq. ft. from January to March 23’. There is 9% YoY increase in leasing standing at 11.6 million sq. ft. supply in Q1 2023.
The real estate sector is going to have a positive movement this year. In Q1, 2023, sales of residential units surged by approximately 12% YoY which is more than 78,000 units.
In Q1, 2023, 49% of mid-segment housing units were sold. At second number is affordable and budget segment housing units sale with 62%.
