Over 16.6 million square feet of Grade-A mall space in Tier-I cities could be added during this and the next calendar year, said ANAROCK, a property services consultant. It said that this expectation comes amid shortage of new shopping malls in India’s leading urban hubs.
Hyderabad and Delhi-NCR would account for a significant 65% share of this fresh supply as the consumption trend is expected to surge, it added.
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With the demand-supply imbalance of previous years now gradually normalizing, mall vacancy rates in top seven cities will stabilize over the next two years at present level of 8.2%.
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These top seven cities of India include Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, Kolkata and Pune.
Notably, in 2021, the vacancy rate in these cities was as high as 15.5%.
Anuj Kejriwal, CEO and MD, ANAROCK Retail said, “The previous three-year data trends show that new mall supply in the top 7 cities did not match the overall leasing. In 2022, these cities witnessed approximately 2.6 msf of new Grade A retail supply, while leasing clocked in at around 3.2 msf. Likewise, 2023 saw 5.3 msf of new Grade A mall supply, while 6.5 msf were leased. New Grade A mall supply in 20204 was just 1.1 msf, while leasing was 6.5 msf.”
The report also said that both mall developers and retailers are showing resolute confidence, spurred by strong leasing and positive consumer sentiments.
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