This marks an improvement from 2021 when vacancy levels were at 15.5%. The decline is driven by strong leasing activity and limited new supply
New Delhi: The retail sector continues to thrive with mall vacancy levels hitting a record low of 8.3% in the first half of 2024, according to the latest Anarock Retail Releap report.
This marks an improvement from 2021 when vacancy levels were at 15.5%. The decline is driven by strong leasing activity and limited new supply, with high-performing malls operating at nearly full capacity, the report added.
“Superior malls are operating at near-full capacity, with national and global brands actively pursuing space in successful malls and high-street locations,” said Anuj Kejriwal, CEO & MD – Retail, Industrial & Logistics, Anarock Group.
Key Highlights from the Report
- Demand Outstrips Supply: For the third consecutive year, demand for retail space exceeded supply, with over 3.1 million sq. ft. leased across India in H1 2024.
- Category Growth: The Watches & Jewellery segment accounted for 6% of total leased space, reflecting a growing demand for exclusive retail outlets.
- Preference for Smaller Spaces: Nearly 70% of leases were for spaces under 2,500 sq. ft., showcasing retailer preference for compact formats.
- Upcoming Supply Concentration: The NCR, MMR, and Hyderabad regions will account for 85% of new mall supply over the next 4-5 years.
While Apparel & Accessories and Food & Beverages remain dominant leasing segments, the growing share of watches and jewellery outlets highlights a shift towards more diversified retail offerings.
Rental Value Surge
Rental values in prominent high streets continue to rise and are expected to maintain an upward trajectory until a new quality supply is introduced.
The retail sector’s upward momentum is set to continue, with major supply additions planned in the coming years. The National Capital Region (NCR) is poised to lead with the largest share of new mall supply, followed closely by Mumbai Metropolitan Region (MMR) and Hyderabad.
