Retail Sector: Many malls to open in 2022 as retail sector picks up pace

According to real estate consultant Anarock, nearly 10.15 million square feet of new retail space will be available in the country this year — nearly double compared to 2021 — as demand for retail space in A-class malls prompts developers to accelerate construction.

According to the data, about 15 new shopping centers will enter the market in 2022, spread over 12 cities with 1, 2 and 3 tiers. Chennai will see the largest supply this year – four new shopping centers spread over an area of ​​2.55 million square feet.

“As consumers return to more normal shopping and social patterns and repopulate malls, the Indian retail property market is responding to significantly improved footfall. Malls are once again at a high occupancy rate and the need for more organized retail space has been expressed,” said Pankaj. Renjhen, COO of Anarock Retail.

Another 7.25 million square meters of retail space is expected to be occupied by 2023.

The other tier-1 cities that will get new malls are Ahmedabad, Bengaluru, Hyderabad, Mumbai, Pune and Ghaziabad in NCR, covering a total area of ​​5.1 million square feet. Tier 2 and 3 cities include Vadodara, Budaun, Indore, Nagpur and Udaipur, with a total area of ​​approximately 2.5 million square feet.

In 2020, Covid-19 had hit the economy, and retail in particular. Brick-and-mortar stores in malls and high streets were badly hit, and a quick recovery seemed unlikely.

“In the course of two severe waves that saw huge restrictions on shopping malls, operators had to rethink their business plans and strategies,” Renjhen said.

Given the high rental volumes by users across categories and the momentum seen in the tier 2 and 3 cities, mall developers are finalizing their projects and adding new inventory quickly.

“Shopping center occupancy rates have returned to pre-pandemic levels. New malls are emerging and existing ones are looking for ways to expand, with consumer confidence increasing and malls attracting more and more visitors,” said Rohtas Goel, Chairman,

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