According to CBRE India, the first quarter (Q1) of 2023 was a strong one for Indian real estate, with most sectoral indices reaching annual highs.The provider of commercial real estate services and investments anticipates that despite global headwinds, the country’s solid macroeconomic fundamentals and the real estate sector’s resilience would enable it retains its growth trajectory.
In Q1 2023, leasing activity and supply addition in India’s retail sector both had triple-digit annual growth, and more strengthening of the industry’s growth indicators anticipated.
Even though e-commerce demand increased, third-party logistics continued to fuel leasing momentum during the quarter. According to its “India Market Monitor Q1” reporta report, the arrival of high-quality supply will guarantee the sector’s resistance to macroeconomic volatility.
Although CBRE noted that recessionary forces in important developed economies might slow the pace of decision-making, sustained investment inflows are anticipated in the sector this year.Mumbai, Delhi National Capital Region, and Bengaluru received combined share of around 30% of the sector’s investment inflows in Q1 2023.
Due to the addition of pent-up supply, retail supply is anticipated to approach 2022 levels this year. Additionally, a number of investment-grade projects announced in the previous two years are scheduled to start up in 2023.
This would boost primary leasing, which is anticipated to be the key demand generator for retail space this year, according to the CBRE analysis.In order to diversify their location plans and enable supply chain transformation, retailers in India will seek outside conventional malls and high streets.
This will allow customers to shop to a shop for any product at any time. According to CBRE, social commerce and the use of the meta-verse will become important omnichannel tactics.Indian retailers are likely to keep ‘rightsizing’ their stores to provide a variety of products as well as engage customers.
By- Mansi Suryawanshi