As per the data, about 15 new malls will enter the market in 2022 spread across 12 tier 1, 2 and 3 cities. Chennai will see the highest supply this year– four new malls spread over an area of 2.55 million sq ft.
“As consumers return to more normal shopping and socialising patterns and populate malls again, India’s retail real estate market is responding to significantly improved footfalls. Malls are again seeing high occupancy levels, and the requirement for more organised retail space is pronounced,” said Pankaj Renjhen, COO of Anarock Retail.
Another 7.25 million sq ft of retail space is expected to get operational in 2023.
The other tier-1 cities which will get new mall supply include Ahmedabad, Bengaluru, Hyderabad, Mumbai, Pune and Ghaziabad in NCR, aggregating 5.1 million sq ft area. Tier 2 and 3 cities include Vadodara, Budaun, Indore, Nagpur and Udaipur, with a total area of about 2.5 million sq ft.
In 2020, Covid-19 had hit the economy, and retail in particular. Brick-and-mortar stores in malls and high streets were hit hard, and a quick recovery seemed improbable.
“In the course of two severe waves that saw massive restrictions forced on malls, operators had to rethink their business plans and strategies,” said Renjhen.
Going by the high leasing volumes by occupiers across categories and the momentum witnessed in the tier 2 and 3 cities, mall developers are finishing their projects and rapidly adding new inventory.
“Mall occupancy levels have returned to pre-pandemic highs. New shopping malls are coming up, and the existing ones are looking for ways to expand, with consumer sentiment on the rise and malls witnessing increased footfalls,” said Rohtas Goel, chairman,