September 14, 2022
The malls’ retail sales are expected to grow at a Compound Annual Growth Rate (CAGR) of 29%
Sales are expected to be better than pre-covid levels, at US$ 11 billion, in FY23
Grade A malls, which account for 19% of the 271 malls in India have surpassed pre-pandemic levels in terms of footfalls and occupancy levels
Across the country’s top eight cities, India has a total mall stock of 92.9 million sq ft.
Indian malls are expected to witness a growth in their retail sales at a CAGR of 29% to US$ 39 billion by FY28 according to a report by consultancy firm Knight Frank.
As shopping malls reopened after the pandemic, retail sales in Indian malls across the country’s top eight cities grew by 3% to reach US$ 8 billion last year. These cities are Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, National Capital Region (NCR), and Pune. Sales are expected to be better than pre-covid levels, at US$ 11 billion, in FY23.
Recently, the mall environment has been undergoing evolution, as developers are focusing on making them safe areas for shopping and leisure. Grade A malls, which account for 19% of the 271 malls in India have surpassed pre-pandemic levels in terms of footfalls and occupancy levels. In December 2019, India had 255 malls. Those extra 16 malls were developed by September 2022, according to the report.
Some grade B and C malls are experiencing higher vacancy, developers are re-evaluating leasing options for alternative uses.
Experts said that the existing Grade A malls have over 95% occupancy levels. They have contributed 39% to the overall mall supply in the first half of 2022, because of a good tenant mix, high occupancy, active management and high occupancy. Across the eight cities, India has a total mall stock of 92.9 million sq ft.