Foreign retailers keen to have a piece of the Indian luxury pie

The strong growth of India's retail sector is drawing the interest of foreign retailers including luxury brands looking to establish footholds in strategic locations throughout the country.

International luxury brands such as Maison Margiela and Time Vallée, Charles Tyrwhitt and Franck Provost forayed in the country in the first half of 2024. Other international brands, such as the Swiss luxury watch brand Breitling and the American luxury fashion brand Michael Kors expanded in Chennai and Pune, respectively. In addition, the Japanese homeware brand Daiso Japan and the skincare and cosmetics brand ILEM Japan also opened stores in Chennai.

This rush has boosted retail leasing in the first half of 2024 reaching a 5-year high with 3.1 mn sq ft leased across eight cities.


“Major international luxury brands are recognizing the potential and are eager to establish their presence in the country. Cities like Mumbai, Delhi, and Bengaluru are becoming focal points for luxury retail, offering prime locations and a clientele with a keen interest in premium goods. The enthusiasm is palpable, with many brands forming strategic partnerships, investing in flagship stores, and tailoring their offerings to cater to Indian tastes and preferences,” said Uzma Irfan, director retail, Prestige Group.

India is rapidly emerging as a significant hub for luxury retail, attracting a growing number of prestigious global brands. This burgeoning interest is driven by India's expanding affluent consumer base, rising disposable incomes, and an increasing appetite for high-end products. The luxury market in India is evolving, with consumers increasingly valuing quality, exclusivity, and sophisticated retail experiences.

In the January-June 2024 period, the share of leasing activity was led by domestic firms (73%), followed by EMEA retailers (13%), American retailers (10%), and APAC (4%).

“India is not just a market to watch but a crucial destination for luxury brands seeking growth and a lasting foothold in one of the world's most dynamic economies. The ongoing introduction of quality supply is expected to continue stimulating an uptick in overall space absorption in the coming quarters,” said Ram Chandnani, managing director, Advisory & Transactions Services, CBRE India.

In the first half of 2024, about 0.5 million sq. ft. of retail space was added across tier-I cities. However, CBRE expects an increase in supply in the second half of 2024 as a few investment-grade malls are set to begin operations in cities such as Bengaluru, Hyderabad and Mumbai. These malls are projected to add 3–4 million sq. ft. of new retail space in the second half of 2024

The ongoing leasing activity is anticipated to persist, with the sustained demand for high-quality malls depending on the availability of new properties. Leasing in strategically advantageous locations is expected to remain stable, featuring a diverse mix of primary and secondary leasing continuing at a steady pace. However, as vacancy levels in a majority of key malls across most Tier I cities remain negligible, the entry of investment grade supply will dictate primary leasing trends.