Shopping malls across top eight cities in India are expected to see a rise in retail sales by 29% annually, reaching USD 39 bln by fiscal 2027-28, according to a report by a property consultant.
This rise in retail sales can be attributed to consumption growth and opening of new malls, Knight Frank said in its report titled ‘Think India, Think Retail 2022 – Reinventing Indian Shopping Malls.’
During the same period, the consultant said that the potential retail sales in Indian malls are estimated to grow at a CAGR (Compound Annual Growth Rate) of 29% in the FY2022-28 period reaching USD 39 billion by FY2028.
Retail sales in malls across the top 8 cities — Mumbai, National Capital Region (NCR), Bengaluru, Hyderabad, Chennai, Pune, Kolkata and Ahmedabad — grew at a CAGR of about 3% to reach USD 8 billion in FY2022.
In FY2023, the potential consumption in malls is estimated to surpass the pre-Covid-19 levels to reach USD 11 billion.
Vivek Rathi, Director Research of Knight Frank India, said that fresh supply of retail space in malls is estimated at 50-55 million square feet in the next six years, and this will drive growth in sales at shopping centres.
He said the economic growth and increase in organised retail consumption have also been taken into account.
At the end of the first six months of 2022 calendar year, Knight Frank said the total mall stock stood at 8.6 million square metre (92.9 million square feet) spread across 271 operational malls in the top eight markets.
An incremental supply of 15.5 million square feet was added between January 2020 and June 2022, despite the disruption of the pandemic, the consultant highlighted.
