Net leasing of retail space in shopping malls increased by 69 per cent during the first quarter in seven major cities. This is the report from malls in Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Kolkata and Pune.
Supply of space in malls, however, fell by 87 per cent in the seven cities. The Delhi-NCR market accounted for 84 per cent of total leasing of retail space in malls. The other markets that saw some decent absorptions were Hyderabad and Chennai.
Brands are looking at increasing their presence in key markets. They are also discerning about the location of their stores and are therefore choosing to align with retail malls that have higher footfalls and better conversion rates per footfall.
Vacancy levels across mall spaces remained stable across most markets with the exception of Delhi–NCR (18 per cent), Hyderabad (11 per cent) and Chennai (seven per cent). Delhi–NCR emerged as the most active retail market for the quarter with the completion of two new malls, while no other city saw any new completion.
Malls that close are typically those which were constructed many years back and did not go through periodic modifications to suit changing requirements of retailers and shoppers.
Mumbai, too, saw the closure of mall spaces, contracting the available retail space and bringing down the vacancy to a manageable ten per cent in the quarter as against 13 per cent in the quarter of the previous year.