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The number of underperforming malls in India, also known as “ghost malls”, has increased significantly, Raghavendra Kamath reports for Financial Express, citing a Knight Frank study. It has led to a revenue loss of ₹6,700 crore for developers in 2023. Delhi-NCR, followed by Mumbai and Bengaluru, saw the most number of ghost malls, the report says. In fact, several of these ghost malls are being shut down as developers are opting for residential or commercial properties. Inorbit Mall, Bengaluru, Moments Mall in Delhi, and K Mall in Mumbai are some of the underperforming malls that have been shut, the report says further. Shishir Baijal, Chairman and Managing Director of Knight Frank India, says that as shoppers value a premium retail experience, Grade A malls have succeeded in maintaining footfall, occupancy, and conversion rates. On the contrary, ghost malls fail to provide such value to shoppers, he adds. The Knight Frank study considered 340 shopping centres and 58 high streets across 29 Indian cities, the report adds. Source: https://lnkd.in/g_xVTRdJ ✍: Divya Pathak 📷: Getty Images #GhostMalls #ShoppingCentres

8Mn SqFt Of New Retail Mall Supply Expected In India In 2024 Cushman & Wakefield report forecasts a significant addition of retail space in 2024, with nearly 8 MSF (million square foot) of mall supply expected to commence operations across the country. #RetailSpaceForecast #MallSupply2024 #MainStreetLeasing #RetailTrends #CitywiseRetail #CommercialRealEstate #RetailLeasing #MarketInsights #UrbanRetail #RetailGrowth2024

🛍️ India's Small Malls Turning Into Ghost Malls Amid Consumer Shift 🛒 A recent report from Knight Frank India highlights a troubling trend: India's small malls are increasingly becoming ghost malls. As consumers gravitate towards online shopping and larger shopping centers, smaller malls struggle to keep up. 🔍 Key Insights: Ghost Malls Defined: Malls with a vacancy rate exceeding 40%. Rising Numbers: In 2023, ghost malls increased to 64 from 57 in 2022. Vacancy Surge: 13.3 million sq. ft. of shopping space remains vacant, causing a loss of ₹67 billion ($802.5 million) in revenue for developers. Weak Consumer Demand: Private consumption, making up 60% of India’s GDP, grew just 3.5% YoY in the last quarter of 2023, while the overall economy grew 8.4%. 🔺 Impact on Small Malls: Average leasing area of 100,000 sq. ft. Vacancy rates rose to 36.2% in 2023 from 33.5% in 2022. 132 small shopping centers are on the verge of turning into ghost malls. 🔹 Bigger Malls Hold Steady: Average leasing area of 500,000 sq. ft. Vacancy rate remains low at 5%. Middle-level malls have a vacancy rate of 15.5%. Gulam Zia, Director of Knight Frank, emphasizes that smaller mall owners are caught in a downward spiral, unable to compete with the convenience and variety offered by larger shopping centers. This trend reflects weak consumer demand and poses a risk of job losses and economic dislocation, particularly for small retailers and service providers. Let's stay informed and prepared to adapt to these shifting consumer behaviors. #RetailTrends #IndianEconomy #ShoppingMalls #ConsumerBehavior #KnightFrankIndia

🛍️ India's Small Malls Turning Into Ghost Malls Amid Consumer Shift 🛒 A recent report from Knight Frank India highlights a troubling trend: India's small malls are increasingly becoming ghost malls. As consumers gravitate towards online shopping and larger shopping centers, smaller malls struggle to keep up. 🔍 Key Insights: Ghost Malls Defined: Malls with a vacancy rate exceeding 40%. Rising Numbers: In 2023, ghost malls increased to 64 from 57 in 2022. Vacancy Surge: 13.3 million sq. ft. of shopping space remains vacant, causing a loss of ₹67 billion ($802.5 million) in revenue for developers. Weak Consumer Demand: Private consumption, making up 60% of India’s GDP, grew just 3.5% YoY in the last quarter of 2023, while the overall economy grew 8.4%. 🔺 Impact on Small Malls: Average leasing area of 100,000 sq. ft. Vacancy rates rose to 36.2% in 2023 from 33.5% in 2022. 132 small shopping centers are on the verge of turning into ghost malls. 🔹 Bigger Malls Hold Steady: Average leasing area of 500,000 sq. ft. Vacancy rate remains low at 5%. Middle-level malls have a vacancy rate of 15.5%. Gulam Zia, Director of Knight Frank, emphasizes that smaller mall owners are caught in a downward spiral, unable to compete with the convenience and variety offered by larger shopping centers. This trend reflects weak consumer demand and poses a risk of job losses and economic dislocation, particularly for small retailers and service providers. Let's stay informed and prepared to adapt to these shifting consumer behaviors. #RetailTrends #IndianEconomy #ShoppingMalls #ConsumerBehavior #KnightFrankIndia

Retailers focusing on main streets for new store opening According to Cushman & Wakefield, the continued dominance of main street retail leasing is owing to limited new mall openings and a strong demand for high-quality retail spaces. “We anticipate the main street activity to remain healthy. Additionally, the dominance of domestic brands, accounting for 53% of leasing volume, along with the strong performance of fashion and F&B highlight the evolving retail preferences in India,” said Saurabh Shatdal, Head Retail and Managing Director, Capital Markets, Cushman & Wakefield. #realestate #property #realestatedevelopers #realestateagents #leasing #leasingagents #therealtynews #investors #investments #malls #retailers #retailing #stores #expansion #highstreetretail #brands #demand #growth #data #report Cushman & Wakefield https://lnkd.in/g3i85ssC

Interesting article! One key aspect that could help revitalize ghost malls is leveraging technology to understand evolving consumer behavior. By adopting data analytics and consumer tracking technologies, malls can gain valuable insights into shopper preferences and trends. This data-driven approach can inform strategic decision-making, allowing malls to adapt and tailor their offerings to better meet the needs of modern consumers. The integration of technology not only enhances operational efficiency but also creates personalized shopping experiences, ultimately revitalizing these spaces. Lack of applied technology could indeed be a significant factor contributing to the challenges faced by traditional malls.

On a shopping spree: Why high-street retail is making a big comeback in India? As high-street retail continues to develop, it is poised to become a strong contender for luxury retail in India. The combination of rising rentals, better sales conversions and improving infrastructure is making It increasingly attractive to both local and global brands. "Occupancy cost has traditionally been higher in malls than in high streets. However, the gap has been reduced significantly for both models to come at par led by the changing dynamics of consumer approach," Anuj Kejriwal, CEO & MD of ANAROCK Retail said. Anuj Puri #realestate #property #therealtynews #highstreetretail #investors #report #investments #realestatedevelopers #realestateagents #anarock #data #brands #leasing #leasingagents #demand #growth #malls ANAROCK https://lnkd.in/gphFFGkB

Leasing of retail space in shopping malls and prominent high streets rose nearly 5% during January-September this year across eight major cities, according to Cushman & Wakefield. Saurabh Shatdal | Akash Nagpal | Trehan Iris | Sameer Verma | LuLu Malls India Click on the link below to know more..... #retailnews #retailtrrends #retailsector #retailindustry #retailing #retailresults #retailupdates #businessnews #retailgrowth #retailsectornews #retailindia #retailtrends #retailbusiness #ir #IndiaRetailing

#India sees 230% surge in ghost #shoppingmalls India’s #smallshoppingcentres turning into ghost malls Number of ghost malls rising in India, Delhi NCR tops the list, followed by Mumbai, Bengaluru Industry analysts said this reflected weak #consumerdemand and could lead to job losses and economic dislocation, particularly for #small retailers and service providers. India is seeing a sharp #surge in #ghost shopping centres with underperforming #retailspace surging by 230% year-on-year to 13.3 million square feet in 2023, according to a report by real estate consulting firm Knight Frank. These centers, defined as those with #vacancyrates of over 40%, grew to 64 by the end of 2023, from 57 in 2022. The rise in these ghost malls —calculated basis gross leasable area (GLA)—reflects a massive ₹6,700 crore lost in potential sales in 2023, according to the 'Think India Think Retail 2024" report released Tuesday. Several #shoppingcenters are struggling as an increasing number of #consumers turn to #online shopping and are shifting to larger centers for enhanced experiences.