18 mn sq ft mall retail space to be added to top 8 cities in 2024-27: C&W

Fresh supply of retail space in shopping malls during 2024-27 across eight major cities is expected to be 18 million sq ft, which is one-third of the projected requirement to meet the demand, according to Cushman & Wakefield (C&W).

Real estate consultant C&W in its latest report pointed out that "India's Retail Space Per Capita (RSPC) lags behind other South Asian countries, including Indonesia, Philippines, Thailand, and Vietnam."

This underlines vast potential for expansion of retail spaces, it added.

At present, the total retail space in top eight cities is around 60 million sq ft and 18 million sq ft is expected to be added during 2024-27.

In the first half of 2024, no new mall became operational.

"To reach a 1.0 RSPC by 2027, comparable to Indonesia -- the closest relevant comparison owing to relatively similar per capita incomes -- there is a need to construct about 55 million sq ft of mall space over the next four years," the consultant said.

At present, the forecasted pipeline of Grade-A retail mall projects add up to merely 18 million sq ft through the 2024-27 period.

Saurabh Shatdal, Managing Director, Capital Markets, and Head Retail, C&W, said, "India's retail sector is at a pivotal moment. The rising consumer confidence and increasing discretionary spending are clear indicators of the sector's potential. To capitalise on this growth, it is imperative to address the supply-side challenges and ensure the availability of quality retail spaces."

The addition of 55 million sq ft of Grade-A retail space will be crucial in meeting the demands of this dynamic market, he added.

"This calls for a concerted effort from all industry stakeholders to chart a sustainable path forward, ensuring the Indian retail sector reaches its full potential," Shatdal said.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd said the demand for quality retail spaces is set to rise phenomenally particularly in places like Gurugram, as more and more people prefer a one-stop solution that offers a combination of shopping experience, entertainment, ambience, and community engagement.

Vineet Dawar, Sr. VP, Sales & Strategy, Elan Group, said, "India's retail landscape is evolving rapidly, and the demand for premium shopping experiences is outpacing the current supply."

Bhumika Group Managing Director Uddhav Poddar said that "one of the strongest pulls of malls is that they combine shopping with leisure".

There is a rapid expansion of malls happening in tier-2 and 3 cities, he said.

The top cities covered by Cushman & Wakefield in its report were Delhi-NCR, Mumbai, Chennai, Kolkata, Pune, Bengaluru, Hyderabad, and Ahmedabad.