Luxury brands preferred high street retail locations over shopping malls to open their stores during the last calendar year, according to a CBRE and PHDCCI report.
Real estate consultant CBRE and PHD Chamber of Commerce and Industry (PHDCCI) on Wednesday released their joint report ‘The Ascent of Indian ‘Luxe RE’ that highlights luxury retail leasing patterns across various retail formats from 2022 to 2023. “In 2023, stores across high streets, typically open marketplaces in a prominent area with a strong retail presence, remained the top choice for luxury brands in India’s top eight cities,” CBRE said.Luxury brands leased 0.3 million square feet of space in the high street store formats, registering over 100% Y-o-Y (year-on-year) increase.
Leasing of retail space by luxury brands in malls stood at 0.24 million sq ft during 2023, up 300% Y-o-Y.
Leasing in standalone stores by luxury brands stood at 0.1 million square feet last year, registering a jump of over 200% Y-o-Y.
The overall leasing by luxury brands across the formats stood at 0.6 million square feet in 2023, at almost 170% Y-o-Y growth.
While high streets constituted a 45% share in the overall luxury retail leasing in 2023, luxury brands’ stores in malls followed at 40% and standalone stores accounted for the remaining 15%.
“This surge in leasing has been accompanied by the entry and expansion of various international luxury fashion, watch and jewellery brands across different locations,” the consultant said.
The eight cities tracked for leasing include Delhi-NCR, Mumbai, Bengaluru, Kolkata, Pune, Ahmedabad, Chennai, and Hyderabad.
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said, “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, he added.
“This positive momentum is expected to continue, aligning with our anticipation for a similar trend in the years ahead,” Magazine said.
He noted that 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,” Magazine said.
