New Delhi

Freshsupply of retail spaces in shopping malls declined 57 per cent to 0.9 million sq ft during January-March across seven major cities due to delays in construction activities, according to Anarock. Real estate consultant Anarock reported that gross leasing of retail spaces in malls stood at about 4.1 million sq ft in the first half of the year as against just 0.9 million sq ft of new completions of retail spaces. The seven major cities are -- Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai and Kolkata. Anuj Kejriwal, CEO – Retail & CEO – Europe, Middle East & Africa at Anarock Group, said, “The supply problem is cumulative and escalating - data of India’s top seven cities over the past 16 years shows a persistent mismatch between Grade A retail supply and leasing demand.”

While new mall completions fluctuated sharply on a year-on-year basis, he noted that the leasing demand has steadily absorbed available Grade A space, pushing vacancy rates lower.

“We now have a chronically supply-constrained market where retailers’ biggest challenge is not drawing shoppers but finding the right spaces to serve them in,” Kejriwal said. In 2023, the top seven cities added 5.3 million sq ft of new Grade A retail supply against gross leasing of 6.5 million sq ft.