Even though new malls are taking time to develop, and the existing malls are already occupied, new brands are picking up space to churn healthy revenues by wooing customers.
Trends suggest that leasing activity in malls remained relatively low, constituting just 32% of the total leasing volume. The lack of new mall supply in Q3-2024, with no fresh mall commencements, contributed to this subdued leasing activity.
Owing to the prevalent demand-supply dynamics, the report further highlights the tightening vacancy rates, with Grade-A malls across major cities witnessing a significant decline, says the latest report from Cushman & Wakefield, a real estate services firm.
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According to its Q3-2024 Retail MarketBeat Report, the vacancies in Grade-A malls have also tightened due to high demand from international brands, which continue to prioritise these locations over main streets. According to the report, foreign brands accounted for a 30% share in leasing volume in malls for year-to-date 2024. In terms of overall leasing volume for the sector, which stood at 5.5 million square feet (MSF) year-to-date in 2024, foreign brands captured a 15% share.
In terms of supply, the report said that while the third quarter of 2024 saw no new mall supply enter the market, the fourth quarter is expected to bring much-needed retail space with approximately 1.8 MSF of Grade-A malls anticipated to open, primarily in Mumbai, Delhi-NCR, and Pune, providing fresh options for retailers amid tightening vacancy.
Saurabh Shatdal, Head Retail and Managing Director, Capital Markets, Cushman & Wakefield, says, “The Indian retail sector is evolving rapidly, and main streets continue to record high leasing due to limited mall supply. The strong demand-supply dynamic has driven rental growth, particularly in Delhi NCR and Pune.
Malls, however, faced a quieter quarter due to a lack of supply — a gap that we expect to be addressed in Q4. Retail leasing trends, led by Fashion, F&B, and Accessories, reveal a clear shift toward more discretionary spending, highlighting the evolving lifestyles of Indian consumers.”
But, as experts say, malls are definitely doing their bit to continue to be an attractive destination for consumers. Sample this, DLF Malls, a leading name in India’s retail space, has opened over 80 new and unique brands to its iconic properties since April this year, further reinforcing its position as a frontrunner in the retail space in India.
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Spanning across Delhi NCR, DLF Mall of India, DLF Promenade, DLF Avenue, DLF CyberHub, Horizon Plaza and DLF Cyber Park are host to these new store openings that include brands across various categories, such as — fashion, F&B, and beauty & wellness, reflecting DLF Malls’ dedication to creating and curating unforgettable holistic shopping experiences for its patrons.
Malls say that with the festive season in full swing, they are enhancing the retail experience by welcoming a dynamic range of new brands across various categories, amplifying the excitement and joy in every shopper’s journey and thus offering a packaged experience.
In the Beauty & Wellness category, DLF Malls has added Chanel at DLF Mall of India, and Armani Beauty at DLF Promenade. Brands like Dior Beauty, Nykaa Luxe, Tweak and Lovechild by Masaba too have been added to the bouquet of offerings at its various leading malls.
In the food & Beverage category, DLF Malls claims to be a culinary haven with exciting new additions like P.F. Chang’s at DLF Mall of India and DLF CyberHub and Pirates of Grill — Grande at DLF CyberHub. For an evening of great food and live performances, Diablo, 145 Café & Bar, and Luka By Downtown provide an elevated dining experience.
Other popular food outlets such as Le Marche Select, California Burrito, Haldiram’s, Mustard Madras, Yeti — The Himalayan Kitchen, Blue Tokai, Camdin, Pret A Manger, Casa Dona, Domino’s, Si Nonna’s, Dohful, Beanly Coffee, Third Wave Coffee, Koolchas, Boba Bhai, Butter Berry etc too have expanded their presence at several of DLF properties.
Under the Fashion category, brands such as Nike Well Collective, Eské, Abraham and Thakore, Tasva, Coyuu, Kaarigar etc are new entrants. Similarly, a lot of brands under Jewellery & Watches, Home & Lifestyle, Leisure & Entertainment too have been opening up new outlets.
Pushpa Bector, Senior Executive Director at DLF Retail, says, “At DLF Malls, customer centricity remains at the heart of everything we do. We continuously strengthen our categories and carefully curate a dynamic brand mix to ensure that every visit is more than just a shopping trip—it’s an immersive and holistic experience.
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With the addition of these new and unique stores, especially during this festive season, we are reinforcing key categories, such as – fashion, beauty & wellness, and dining, to elevate the excitement for our visitors. And with many more store openings in the pipeline, we remain committed to offering a mall experience that perfectly aligns with our patrons’ dynamic lifestyles and evolving preferences.”
Currently, DLF has 2 Luxury Properties and 6 Premium Properties across Delhi-NCR and Chandigarh. DLF’s Luxury Malls portfolio includes its two premier destinations, DLF Emporio and “The Chanakya”. The premium Malls portfolio, includes DLF Mall of India, DLF Promenade, DLF Avenue, Saket, DLF CyberHub and DLF City Centre, Chandigarh. DLF Malls aims to enter the Goa market with DLF Promenade; with a 0.7 million square feet of premium, multi-leveled mall at prime localities in the city, Patto Plaza.
DLF Malls is also introducing an upcoming new concept — Plazas. Positioned as upscale and premium neighbourhood malls catering to the daily needs and requirements of audiences residing in the country’s most prominent catchments, Plazas will be providing an unparalleled level of quality, convenience and ease. There are two upcoming Plazas, namely – DLF Summit Plaza in DLF5, Gururgam; and DLF Midtown Plaza in Moti Nagar, Delhi.
