The Indian mall story is far from over. As per a recent report, the supply of superior grade mall in Indian retail real estate market will increase by 18 percent by 2022.
Due to the increase in supply, a total of 34 million sq. ft. of space will be available by 2022. The findings were concluded in a report titled ‘India’s Retail Realty – A Changing Face,’ launched by JLL, India’s largest real estate services firm. To read the complete report, click here.
The report also emphasized the rise of superior high-end malls. It states the average and poor quality malls will soon be a thing of the past as their supply will go down by 9 percent.
It seems that the developers and promoters have taken a cue from the fact that the people tend to prefer malls that have F&B as well as entertainment services apart from different brands for shopping.
Asset Quality Wise Break-Up
Operational mall stock Future Supply pipeline % Jump
(2008 to 2012) (2018-2022)
Superior – 46% 64% 18% increase
Average – 35% 26% 9% decrease
Poor – 19% 10% 9% decrease
* The year (2013-2017) witness extremely low new supply in Indian retail real estate and hence are not advisable for granular analysis.
* Source: Real Estate Intelligence Service (JLL)
At present, there are a total of 253 malls in India with 77 new malls being added in the H1, 2018. Approximately 90 new malls are expected to be open by the end of 2022.
“These are exciting times for the retail industry globally and India is no exception; today, the Indian consumer is very evolved and traveling across the world experiencing the retail revolution,” Naveen Jaggi, Chairman – JLL Global Retail Leasing Board and President Americas, Retail Advisory Services, Leasing and Capital Markets, said, PR News Wire reported. “Lots of new trends are being witnessed and the industry is undergoing a huge transformation from offline to online customizing it’s offering to offer bespoke experiences to its customers.”