Mumbai, March 19 (IANS). There is a strong growth in the retail sector in India and the demand for mall space has been more than the third consecutive year supply. This information was given in a report released on Wednesday.
The report said that leasing activities remain strong. The reason for this is the rapid growth of organized retail sector in big cities of the country.
According to a report by anarock retail, 2024 was given over 6.5 million square feet of organized retail space lease, much higher than the new supply.
Due to this, there has been a significant reduction in the empty space in the shopping mall, which has come down to 7.8 percent now.
The report stated that due to all these factors, the rental value was increased. Also, competition among retailers for prime retail location has increased.
Retailers are also turning to large store space to improve customer experience. The highest leasing transactions have been recorded for spaces between 2,000 to 5,000 sq ft.
However, due to the availability of limited places in the mall, there is also a great demand for stores between 1,000 to 2,500 sq ft.
The retail category saw a 11 percent increase in leasing activity in the second half of 2024 in the second half of beauty and personal care and departmental store segment.
According to the report, a new mall of 37.7 million square feet can be added to the space supply between 2024 and 2028.
The maximum supply is expected to be in the National Capital Region (NCR), which can be about 47 percent of the upcoming mall development alone.
The report stated that Mumbai Metropolitan Region (MMR), Hyderabad and other major cities like Bangalore will also see a strong growth in organized retail space.
Anuj Kejriwal, CEO and MD of Eneroc Retail, said, “Fales are increasing in malls and highstrats and it is expected that until new good quality supply is added, it will continue to increase.”
-IANS
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