Fashion and apparel lead India’s retail real estate in Q1 2024

The Fashion and Apparel sector leads India’s retail landscape, accounting for 40% of real estate leasing in Q1 2024 (January-March). Post-COVID-19, the sector has also seen a surge in new infrastructural developments across urban and emerging cities.

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The Fashion and Apparel sector has emerged as the frontrunner in India’s retail landscape, accounting for an impressive 40% of the real estate leasing activity in Q1 2024 (January-March). This significant development highlights the sector’s burgeoning influence and robust growth potential in the country’s retail market.

According to a recent JLL report, the surge was driven primarily by mid-segment brands, which captured a substantial 40% share of the leasing activity. These were closely followed by value segment brands, which held a 38% share. This trend underscores the strong demand for affordable and mid-range fashion products among Indian consumers.

The report also highlights a positive outlook for the organized retail market post-COVID-19. The sector has witnessed a surge in new infrastructural developments across urban centers and emerging cities. In the first quarter of 2024 alone, 1.1 million square feet of retail space were leased, indicating a robust recovery and growth trajectory.

Domestic brands dominated the leasing activities, accounting for 76% in the first quarter of 2024. A noteworthy trend is the proliferation of multi-brand outlets (MBOs), which are facilitating the entry of global beauty and cosmetics brands into the Indian market. Additionally, seven foreign brands chose to establish their first outlets in India during this period, with Mumbai and Delhi NCR emerging as the top choices. The majority of these new entrants belonged to the beauty and cosmetics sector, which has been experiencing unparalleled growth in recent years.

Overall, the dynamic growth in the Fashion and Apparel sector, coupled with the rising prominence of the F&B and beauty segments, underscores a promising future for India’s retail real estate market.