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CBRE South Asia Pvt Ltd, in collaboration with PHD Chamber of Commerce and Industry, has unveiled their latest joint report titled 'The Ascent of Indian 'Luxe RE', shedding light on the burgeoning luxury retail landscape across India's top eight cities.
The report reveals that high streets emerged as the preferred leasing choice for luxury brands in 2023, showcasing a remarkable over 100 per cent year-on-year growth. According to the findings, luxury brands leased approximately 0.3 million square feet of space in high-street store formats, marking a substantial surge from the previous year. Concurrently, leasing in luxury stores situated within malls witnessed a staggering over 300 per cent year-on-year increase, with 0.24 million square feet of space being acquired in 2023. Standalone stores also experienced significant growth, with leasing reaching 0.1 million square feet, reflecting over 200 per cent year-on-year increase. The overall leasing by luxury brands across different formats amounted to 0.6 million square feet in 2023, representing nearly 170 per cent year-on-year growth. High streets retained a dominant position in India's luxury retail leasing landscape, constituting a substantial 45 per cent share in the overall luxury retail leasing in 2023. Luxury stores in malls followed closely with a 40 per cent share, while standalone stores accounted for the remaining 15 per cent. The surge in luxury retail leasing has been fueled by the entry and expansion of various international luxury fashion, watch, and jewellery brands across different locations in India. The report underscores that the trend is not confined to the metropolitan areas but extends to tier II cities like Chandigarh and Ahmedabad, where affluent consumers seek a wider selection of luxury goods. Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, expressed optimism about the trajectory of India's luxury retail sector. He noted, " India's reputation as a sought-after tourist destination and increasing international exposure have significantly influenced the demand for luxury retail. The luxury sector, which saw a significant increase in leasing in 2023, shows a promising trend with the entry and expansion of international brands. This positive momentum is expected to continue, aligning with our anticipation for a similar trend in the years ahead." He added, "Luxury brands are aggressively chasing new avenues to attract both seasoned and aspiring luxury consumers. As the demographics of these high-end shoppers continue to shift, brands are likely to recalibrate their strategies and expand their physical presence to capture a larger market share." Bimal Sharma, Executive Director & Head - Retail, CBRE India, emphasized the importance of experiential retail environments crafted by luxury brands. Sharma said, "Luxury brands are revolutionizing the shopping experience by crafting a unique in-store environment. These experiential havens serve a dual purpose, fostering deeper customer engagement and amplifying the perceived quality of their products." "By creating a lasting impression, these stores will likely empower customers to become brand ambassadors, sharing their experiences on social media and helping to expand the brand's reach. Physical stores not only provide a powerful platform to showcase product lines but also help the brands cultivate a distinctive image," he added. Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry, highlighted the significance of the real estate sector in India's economic growth. He remarked, "The Indian real estate sector is expected to touch the USD 1-trillion mark by 2030 with affordable housing playing a significant role in the growth. The government has been making significant reform measures in the area of the real estate sector in India as these sectors have immense potential to generate employment for the growing young workforce." He added, "The sector continues to embrace innovation and disruptive technological interventions, it ushers in a significant shift in customer and investor experience and most importantly we will witness developers embarking on creating sustainable buildings using technology". Luxury retail in India continues to evolve rapidly, reshaping the catchment areas of cities known for their luxury retail offerings. The report indicates that cities like Delhi-NCR, Mumbai, Bengaluru, and Hyderabad are witnessing significant developments in their luxury retail landscapes, with prestigious luxury brands capitalizing on the growing demand for high-end goods. (ANI)
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