Mall vacancies plummet to 8.3 per cent, down from 15.5 per cent in 2021, as India’s retail sector sees incredible growth amid positive macroeconomic conditions.
A boom in consumer demand has brought about this surge in supply addition, which according to a report by Anarock will sustain for the foreseeable future.
Supply addition follows sustained surge in demand
Commenting on these developments, Anuj Kejriwal, CEO and MD-Retail, Industrial and Logistics, Anarock Group said: “Vacancy in prominent malls continues to be on the decline owing to limited supply and robust leasing. Superior malls across the country are operating almost full capacity”
Amidst all this surge in supply addition, the apparel and accessories and food & beverages segment retains the lion’s share of the pie. On the other hand, smaller segments like that of watch and jewellery exclusive stores have also witnessed impressive growth this year with close to 6% of the total retail leasing volume.
Metro cities account for a lion’s share of planned supply
In terms of geography, the largest share of planned supply addition is in Delhi NCR, Mumbai & Hyderabad. These three metros account for a mammoth 85% of the planned supply. However, rental values in prominent high streets are also witnessing a strong surge in prices. Kejriwal also added: “Retailers and brands continue to prefer smaller spaces as nearly 70 per cent of the leases were for spaces ad-measuring up to 2,500 square feet”
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This growth is a fantastic opportunity for national & international brands to capitalise on, as consumer demand continues to be higher than supply.
