Main Streets in Top 8 Cities Rule the Retail Leasing Landscape In Q2'18(April – June’18): CUSHMAN & WAKEFIELD


Main Streets in Top 8 Cities Rule the Retail Leasing Landscape In Q2'18(April – June’18): CUSHMAN & WAKEFIELD

  • Current mall inventory across 8 cities is 232 malls, spread across 81.26 msf. There is a 16% increase compared to last 3 years.
  • 32 malls(13.81 MSF) currently under construction in top 8 cities, expected to be operational by 2020. There is a 53% increase compared to last 2 years.
  • New mall supply of 900,000 sf and 300,000 sf observed in Chennai and Kolkata respectively, in Q2 2018.

Q2 2018 saw PE investment in retail touch INR 1700 crore, about 400% greater as compared to 2014

National, July 10 2018: Cushman & Wakefield, leading global real estate consultant’s research findings indicate that the trend of main streets ruling the retail leasing landscape in top 8 Indian cities continued. As compared to Q1’18, the retail mall construction trend continues to remain promising in Q2 ’18, with about 1.2 msf of new mall space constructed, and 13.81 msf is currently under construction.

Source: Cushman & Wakefield Research

“2018 has been an illustrious year for the Indian retail landscape so far. Reputed global brands continue to enter and expand in India; a clear sign of the strengthening interest & confidence in this fast-growing market with a burgeoning millennial population. Compared to the last few years, 2018 continues to observe considerable investment activity in retail assets and this upswing is expected to continue”.

-ANSHUL JAIN, Country Head & Managing Director India, Cushman & Wakefield n

Cities across India saw noteworthy brands engaging in the retail space, trying to grab their share in this upcoming market. Mumbai’s Lower Parel continued to be the preferred choice for international brands as Moschino, Miniso, Armani Exchange and Typhoon Shelter set up shop during the quarter. In Bengaluru, Asia’s largest 65,000 sf brew-pub - The Big Brewsky, opened in the city at Hennur Road this quarter. Apart from this, Tonique, a premium liquor store, also opened up on a marquee property on Kasturba Road main street in CBD. International furniture brand Ikea is also expected to start operations in their first store in Hyderabad in Q3 2018. Chennai garnered interest of marquee apparel brands such as Lifestyle, H&M, Reliance, and Marks & Spencer.

The mall vacancy figures for Q2 ’18 across cities follows:


Mall Vacancy (in percent)

















Source: Cushman & Wakefield

Rising demand in the Chennai and Kolkata markets has led to record low levels of vacancy and in turn has driven supply of new malls there. In Suburban west submarket of Chennai, Q2 2018 witnessed the supply of 0.90 msf in VR Mall, which caters to catchments of Annanagar, Koyambedu and Arumbakkam. Increase in mall supply is expected to intensify transaction activity owing to a steady demand from retailers. In the upcoming quarters, Rajiv Gandhi Salai is to witness the supply of 2 malls. Rajarhat in Kolkata observed addition of new supply, with new mall supply of 300,000 sf was added to the city’s retail space after a gap of two years with completion of Downtown Mall in Rajarhat.

Key Private Equity transactions worth Rs 1700 crores were completed in the retail sector in Q2 2018. CPPIB invested INR 938 cr in their platform with Phoenix mills, where they bought land from L&T in North Bengaluru, for development of 1 msf Phoenix market city mall, second in the city. Xander - APG also made a substantial investment of INR 800 cr in North Delhi Metro mall.

In the near future main streets that promise high visibility and footfalls to retail brands are expected to continue to drive majority transactions with key demand coming from apparel retailers. India is a key retail market with a 1.3 billion population, 50% of which is below the age of 25, a growing middle class, high urbanization rate and a fast-growing economy. These features promise a growing retail spend power and hence a shining future for the sector. 

For further information, please contact:

Natasha Gupta

AVP – Strategic Marketing

Somil Agrawal

Head of Strategic Marketing - India

About Cushman & Wakefield

Cushman & Wakefield is a leading global real estate services firm with 45,000 employees in more than 70 countries helping occupiers and investors optimize the value of their real estate. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit External Link or follow @ External LinkCushWake External Link on Twitter.

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