Retail stores across high streets remained the top choice for luxury brands in India’s top eight cities in 2023. Also, the highest concentration of the luxury retail sector is in the Delhi-NCR region, which currently boasts nearly 80% of international luxury brands, according to a joint report by CBRE South Asia Pvt. Ltd and PHD Chamber of Commerce and Industry titled ‘The Ascent of Indian Luxe RE’.
Luxury brands leased 0.3 mn. sq. ft. of space in the high street store formats, registering over 100% Y-o-Y increase, while leasing in luxury stores in malls stood at 0.24 mn. sq. ft., at over 300% Y-o-Y increase in 2023. Leasing in standalone stores by luxury brands stood at 0.1 mn. sq. ft. during the year, at over 200% Y-o-Y increase.
The overall leasing by luxury brands across the formats stood at 0.6 mn. sq. ft. 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 jewelry brands across different locations. The eight cities tracked for leasing include Delhi-NCR, Mumbai, Bengaluru, Kolkata, Pune, Ahmedabad, Chennai, and Hyderabad.
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The luxury retail sector is seeing significant developments, with the highest concentration in the Delhi-NCR region, which currently boasts nearly 80% of international luxury brands, the report said.
Luxury malls in the Delhi-NCR region serve as a shopping haven for discerning customers across North India, while Mumbai attracts luxury shoppers from cities throughout Gujarat and Maharashtra.
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Bengaluru caters to the luxury needs of most major cities in the surrounding region, whereas Hyderabad boasts a sizable catchment area for potential luxury retail growth.
Kolkata, despite having a relatively smaller luxury market presence, serves as an important destination for luxury shoppers from East India and international visitors, particularly from Bangladesh.
“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,” said Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE.
