According to CBRE’s latest Asia Pacific Leasing Sentiment Survey, Japan and India have emerged as the two most popular markets for retail expansion in the region, recording the highest levels of diversity in retail leasing demand. Over the past year, retailer appetite for new setups, expansion, and upgrading has remained robust, with over 75% of surveyed brokers reporting increased leasing inquiries as retailers rebuild their store networks post-pandemic.
Japan: A Hub for Diverse Retail Demand
Japan leads the pack in retail leasing demand diversity, with significant interest spanning various retail categories. While the food and beverage (F&B) sector continues to thrive, fashion and apparel retailers—particularly domestic brands—are showing strong demand. The resurgence in consumer spending, bolstered by record-breaking tourist numbers, has contributed to the market’s vibrant leasing environment. Retailers in Japan are capitalising on both core locations and smaller, more targeted store formats to cater to specific consumer needs.
India: A Hotspot for International and Local Brand Expansion
India follows closely behind Japan, driven by both new overseas entrants and emerging local brands. Established mainstream brands, however, are adopting a more cautious approach, reflecting a shift in market dynamics. The expansion in India is supported by the country’s growing consumer base and increasing demand for diverse retail experiences. The retail landscape is also seeing the rise of new subcategories, such as indoor playgrounds in the entertainment sector, which are attracting new entrants into the market.
While leasing sentiment remains generally positive in the Asia Pacific region, there are notable geographic variations. Greater China has seen a dip in leasing activity due to weaker economic conditions, while Korea’s leasing sentiment has softened from previous highs. However, Japan’s strong performance and India’s expanding market remain the top destinations for retailers seeking new opportunities in the region.
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