Total Grade A mall stock at 90.6 million sq. ft in H1 2022, to reach approx. 122 million sq ft by 2025: JLL retail report

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JLL, the country’s premier and largest professional services firm specializing in real estate and investment management today launched a report titled “Innovate.Differentiate.Accelerate.India’s retail sector in 2022 and beyond,”  at the MAPIC India 2022. The report provides insights into some of the key trends in the retail segment and shopping malls. 

The stock of Grade A* shopping malls in the top seven cities of India (Delhi, Mumbai, Pune, Bangalore, Kolkata, Chennai, and Hyderabad) is at 90.6 million sq ft in H1 2022. More than 50% of the mall stock is in Delhi NCR (29 million sq. ft) and Mumbai (19 million sq. ft), respectively. Mall supply of around 1.3 million sq ft is recorded in H1 2022, with additions in Pune, Bengaluru, Mumbai, and Hyderabad. Institutional investors and reputed developers are also increasing their focus on Tier II and III cities.

“The retail sector in the country was under duress for a long time due to the pandemic. However, since March 2022, there has been an equally swift recovery owing to the favorable demographics, rapid urbanization, and rising consumption. All these factors have together created an environment that has boosted the confidence of the sector. With growth potential in the retail sector, investors expect healthy returns in the long run. Investors are looking for quality Grade A assets by established developers and having a marginal vacancy. With the retail market rebounding with strong leasing activity by international and national retailers, the vacancy in superior Grade A assets has been

declining constantly. Investors prefer leased-based assets over strata-sold assets to ensure fair market rentals and timely returns. Investment in retail assets is not just limited to metros, as significant activities have been recorded in Tier II and Tier III cities as well,” said Rahul Arora, head, Office Leasing Advisory and Retail Business, India, JLL. 

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