According to the recently declared CBRE South Asia Report, High Streets have been emerged as the focal point of luxury Retail Leasing in India, among India's top eight cities during 2023. The eight cities which were included in the listing were Delhi-NCR, Mumbai, Bangalore, Kolkata, Pune, Ahmedabad, Chennai and Hyderabad.
Reportedly, most of the luxury brands leased 0.3 million square feet of space in high street store formats, marking an impressive 100% year-on-year increase. The leasing of luxury mall stores showcased a surge over 300% totaling 0.24 million square feet. On the other hand, standalone stores witnessed a similar trend with a 200% year-on-year increase in leasing, amounting to 0.1 million square feet.
All in all, luxury retail leasing reached 0.6 million square feet in 2023, depicting a substantial 170% year-on-year growth. High streets accounted for 45% of the total luxury retail leasing, followed by malls at 40%, and standalone stores at 15%.
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said, “The luxury sector, which saw a significant increase in leasing in 2023, shows a promising trend with the entry and expansion of international brands.”
Besides, luxury retail leasing, the CBRE report on the sales of luxury homes in India shows that, the highest rise in sales of luxury homes was witnessed in Delhi and the National Capital Region (NCR). A total of 5,530 units were sold in the city in 2023, 197% higher than 1,860 units in 2022.
The overall home sales across price categories rose 9% in 2023, as compared to 2022. A total of 322,000 units were sold last year. Sustained momentum in demand also led developers to launch over 313,000 new housing units in 2023, a 6% year-on-year increase.
According to Mohit Jain, Managing Director, Krisumi Corporation, “Buyers today are increasingly drawn to sustainable living options that prioritize well-being and offer top-notch amenities. This shift is evident in the doubling of the share of luxury homes in total housing sales, indicating a strong demand for premium living spaces.”
Founder & COO of YOURS Second homes, Sudeep Chandran explained, “The demand for luxury homes has experienced a notable surge across the country, extending beyond just metropolitan areas. Over the past few years, there has been a noticeable trend among High Net Worth Individuals (HNIs) and Ultra High Net Worth Individuals (UHNIs) purchasing luxury second homes in holiday destinations, besides primary residence. Additionally, there is a growing preference for co-ownership of luxury housing, especially in case of second homes, among these buyers, as it presents several advantages.”
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