Luxury brands eye high street retail spaces

Overall leasing across formats stood at 0.6 million sq ft in 2023

New Delhi, March 13: 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 per cent 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 per cent 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 per cent Y-o-Y.

The overall leasing by luxury brands across the formats stood at 0.6 million square feet in 2023, at almost 170 per cent Y-o-Y growth.

While high streets constituted a 45 per cent share in the overall luxury retail leasing in 2023, luxury brands’ stores in malls followed at 40 per cent and standalone stores accounted for the remaining 15 per cent.

Anshuman Magazine, chairman and chief executive officer, India, 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.

THE LUXURY sector, which saw a significant increase in leasing in 2023, shows a promising trend with the entry and expansion of international brands.