27 December 2022, Mumbai
Premium and luxury products in the jewellery, electronics and fashion segments have led to a rebound of footfall in malls. So says Icra.
During the April to September period this fiscal, trading values recovered to about 115 per cent of pre-Covid levels, backed by an increase in spend per footfall in these sectors. Mall footfall was around 85 per cent of pre-Covid levels. The trading density is expected to remain firm till March 2023 given the impact of the festive season.
Additionally, rental income has bounced back driven by a higher revenue share owing to an increase in retail trading density due to premiumisation. Rental income reached 123 per cent of pre-Covid levels in the first half of fiscal year 2023 and is expected to be around 125 per cent of that in the second half as well. Rental income is expected to increase five or six per cent year on year in fiscal year 2024.Vacancy levels increased marginally till September at 18 per cent from 16 per cent in the year ended March 31, 2022, with new supply of malls in the current year.
Food and grocery retailers are expected to close the current financial year with a 20 per cent growth.
