Mall vacancy levels down to 8.3% in H1 2024 amid robust leasing: Anarock
Retailers and brands continue to prefer smaller spaces as nearly 70% of the leases were for spaces admeasuring up to 2,500 Sq ft.
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The leasing at India's malls has gone up in the first half (H1) of 2024 driven by growth in the retail sector, according to a report by Anarock Property Consultants Pvt Ltd. The mall vacancies in H1 2024 were only 8.3 percent--the lowest in the past six years as demand continually outstrips supply. The mall vacancies were highest in 2020 and 2021 with more than 15 percent due to the Covid pandemic.
According to Anuj Kejriwal, CEO & MD – Retail, Industrial & Logistics at the ANAROCK Group, “Vacancy in prominent malls continues to be on the decline owing to limited supply and robust leasing. Superior malls across the country are operating at almost full capacity. Major national and global brands are keen to take up quality spaces in successful malls and high streets across cities.”
Anarock's report underscored that the apparel and accessories and food and beverages categories remained the dominant segments. However, exclusive stores for watches and jewellery have also witnessed growth– accounting for nearly 6 percent of the total retail leasing volume between April and September 2024.
Kejriwal said, “Retailers and brands continue to prefer smaller spaces as nearly 70 percent of the leases were for spaces measuring up to 2,500 square feet". He anticipated larger spaces would garner an increasing share of the total leased area in the next 4-5 years. "The highest share of upcoming supply is planned in NCR, MMR, and Hyderabad, accounting for over 85 percent of the total incoming supply," he added.
Meanwhile, the rental values across prominent high streets continued to soar and are expected to ascend till quality new supply is added.
The first half of the current year mirrored the leasing momentum seen in the past two years, with over 3 million square feet leased across the country’s major cities.
