India has 74 'ghost malls' as vacancies rise across 32 cities: Knight Frank

A real estate consultancy firm released a report mapping India's retail real estate across 32 cities. Here are its key findings

There are 74 ghost shopping centres -- those with vacancy of more than 40 per cent -- out of 365 such retail properties across the top 32 cities, according to Knight Frank.

Real estate consultant Knight Frank India on Tuesday released a report, 'Think India Think Retail - Value Capture: Unlocking Potential', which has mapped the country's retail real estate across 32 cities.

"A significant finding of the report is that nearly one-fifth of India's operational shopping centres fall into the category of 'Ghost Malls' - assets marked by high vacancies, weak tenant curation, ageing infrastructure, and declining relevance," the consultant said.

 

Across 365 shopping centres surveyed, as many as 74 have been classified as ghost assets, representing 15.5 million square feet (mn sq ft) of area.

Within this pool, the consultant said that 15 centres with a combined area of 4.8 million sq ft could be retrofitted and earn Rs 357 crore as annual rental.

The consultant has defined ghost shopping centres as those that have been in operation for more than three years with a vacancy rate exceeding 40 per cent of its total leasable space.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, "India's retail sector is entering a defining phase of growth, supported by strong consumption and a clear shift toward high-quality organised retail formats."  With Grade A malls operating at only 5.7 per cent vacancy and several Tier 2 cities demonstrating strong absorption trends, he said the sector is well placed for future expansion.

"As consumer demand evolves and brands scale their footprint, revitalising older centres through redevelopment or adaptive reuse will play a pivotal role in shaping the next chapter of India's retail transformation," Baijal said.