India

Retail
Retail Leasing Overview of
Top 7 (Tier I) Cities of India Overview
RELEAP Vol. 1 India Retail Overview: Grade A Malls H1 2023 2
RELEAP Vol. 1 India Retail Overview H1 2023 3

Section 1

Stock,
Supply
& Vacancy
Image courtesy: Unsplash Eastland Shopping Center, Melbourne
RELEAP Vol. 1 India Retail Overview: Grade A Malls H1 2023 4

Total
Stock 49.6 Mn sq. ft.*

An average of 2.4 Mn sq.ft. of fresh supply was

witnessed over last 4 years, with almost 75% of the
supply coming from just two regions, namely NCR &
Bengaluru. Overall Grade ‘A’ mall stock, in terms of GLA,
increased by 2.7% in H1CY23 over H1CY22

4.7
Incremental Supply

Mn sq. ft.

3.9
Gross Leasing

Mn sq. ft.

1.9
1.4
Mn sq. ft.
Mn sq. ft.

Vacancy
(%) 10% 13%
2019 2020

Source: ANAROCK Research

RELEAP Vol. 1 India Retail Overview H1 2023 5

No. of
Grade A Malls 88 *

Vacancy levels have declined sharply post the

pandemic, due to the robust leasing on back
of aggressive expansion plans of retailers,
coupled with limited availability of quality
retail spaces.

5.0
Mn sq. ft.

4.2
Mn sq. ft.

3.1
Mn sq. ft.
2.8
Mn sq. ft.

1.1
Mn sq. ft. 0.2
Mn sq. ft.

9% 7% 6%
2021 2022 H1 2023

*Above figures are based on grade A Malls of Top 7 Cities.

RELEAP Vol. 1 India Retail Overview H1 2023 6

Gross Leasing in CY22 surpassed CY19

levels, the pre-pandemic period, and
leasing in H1CY23 has reached
56% of CY22,
demonstrating a significant comeback
in the retail real estate.
RELEAP Vol. 1 India Retail Overview 7

entals
vs acancy
(A Comparison for H12022 & H12023)

MUMBAI

DELHI NCR

BENGALURU

KOLKATA

PUNE

HYDERABAD

CHENNAI

Stable with Increase of 5%-10% 5%-10% Decrease of

Source: ANAROCK Research <5% change more than 10% Increase Decrease more than 10%
RELEAP Vol. 1 India Retail Overview: Grade A Malls H1 2023 8
RELEAP Vol. 1 India Retail Overview H1 2023 9

Section 2

Leasing Area
Distribution &
Developments
(Marquee & Upcoming)

Image courtesy: Pexels Galleria Vittorio Emanuele II, Milan

RELEAP Vol. 1 India Retail Overview H1 2023 10

% of Transactions Retailers across categories are adopting a

two-pronged approach by expanding &

by Store Size entering newer markets, and also increasing

their stores sizes to capitalize on the
growing share of the organised retail market.

H1 2022
H1 2023
61%
52%

21%
19%

13%

4%
11%

3%
9%

9%

Less than 2,000 to 5,000 to 10,000 to More than

2,000 5,000 10,000 15,000 15,000
sq. ft. sq. ft. sq. ft. sq. ft. sq. ft.

Source: ANAROCK Research

RELEAP Vol. 1 India Retail Overview H1 2023 11

Category-wise
Leasing Area Distribution

31%
29%

13%
14%
1% 2%
3% 2%

15%
5%

13%
4% 7%
7%
4%

5%
8%

7%
6%

9%
7%

8%

Hypermarkets

Watches & Jewellery

Others

Source: ANAROCK Research

RELEAP Vol. 1 India Retail Overview H1 2023 12

Pan-India

MARQUEE
Transactions (H1 2023)

Mall/HS Location
Leased Area

DELHI NCR
DEERIKA
(Hypermarket)
Pacific Mall

LULU Mall
5,00,000 sq. ft.
HYDERABAD

PVR
(Entertainment)
MMR

Capital Mall 33,000 sq. ft. TONI & GUY

(Salon)
CHENNAI

Aerohub
1,736 sq. ft.sq. ft.
1,736
PUNE

CROCS
(Footwear)
Aerohub
1,055 sq. ft.

AZORTE BENGALURU
DECATHLON
(Departmental) (Apparel)
Pavillion Mall 34,500 sq. ft.
Orion Mall
14,800 sq. ft.
Source: ANAROCK Research
RELEAP Vol. 1 India Retail Overview H1 2023 13

Pan-India

UPCOMING
Malls
Pacific Mall
Gross Leasable Area of Faridabad
Expected Launch Date
DELHI NCR 0.40 Mn sq. ft. (Q4CY23)

Lakeshore
Koregaon Park
PUNE 0.22 Mn sq. ft. (Q4CY23)
MMR

BENGALURU

Oberoi
Sky City Mall
1.10 Mn sq. ft. (Q3CY24)

Phoenix
Mall of Asia
1.20 Mn sq. ft. (Q4CY23)

*Details subject to change depending on various factors.

RELEAP Vol. 1 India Retail Overview H1 2023 14
RELEAP Vol. 1 India Retail Overview H1 2023 13

Section 3

Rentals:
Key Malls &
Highstreets
Image courtesy: Wikipedia Marina Bay Sands, Singapore
RELEAP Vol. 1 India Retail Overview H1 2023 16

entals
Key Malls
INR Per sq. ft.
Phoenix
Palladium Mumbai 750 - 850
Select
Citywalk Delhi 725 - 800
Orion
Mall Bangalore 500 - 600
The
Pavillion Pune 450 - 575
Express
Avenue Chennai 400 - 500
Note: Above figures represent Average Carpet Rentals for in-line stores on Ground Floor.

entals
Key Highstreets
Connaught
1 Place Delhi 500 - 1,000
Linking
2 Road Mumbai 500 - 700
Park
3 Street Kolkata 475 - 900

4 Indiranagar Bangalore 350 - 400

Jangali
5 Maharaj Road Pune 275 - 300
Khader
6 Nawaz Khan Road Chennai 200 - 250
Banjara
7 Hills Hyderabad 160 - 300
Source: ANAROCK Research Note: Above figures represent Average Carpet Rentals on Ground Floor.
RELEAP Vol. 1 India Retail Overview H1 2023 17

OUT
LOOK
We feel the vibrancy in the retail sector to continue going forward, thanks to the country’s strong economic
fundamentals, coupled with infrastructural development & political stability.

The Indian retail market is expected to touch $2 trillion by year 2032, growing at nearly 10% CAGR. The sector
not only helps the country in terms of substantial contribution to the GDP but also creates crores of direct &
indirect employment opportunities in ancillary industries. Thus, it will play a key role in helping the nation
attain its $5 trillion economy goal.

The market share of organised retail market in India is growing at a rapid pace with sales & footfalls reaching
an all-time high. The sharp fall in vacancy levels to 6%, from the highs of 13% during the peak of pandemic,
proves strong revival of the sector, thanks to the robust growing demand, across all categories.

On the ground, we see immense enthusiasm both from Mall Operators and Retailers alike, to strengthen their
presence in the current markets and foray into newer cities. Clearly, the retail story is now grown to tier-2 &
tier-3 cities, thanks to the realignment in workforce location, accompanied by strong demand and improved
internet penetration. The leasing activity for the period has surpassed previous year levels and is expected to
post the best-ever numbers, post the pandemic, for the entire year. Currently, the sector is facing challenges
such as shortage of quality retail real estate, which has led to escalation in rentals. However, thanks to the
strong pipeline of upcoming retail assets by organised mall operators, this challenge should subside in near
future.

Technology is another factor which has taken the industry by

storm, with all major retailers heavily investing to upgrade their
systems, to achieve higher sales, better inventory management,
improved omnichannel play and more importantly provide a
convenient, hassle-free and an enhanced customer experience.

Overall, the retail story is on an upward trajectory with robust

growth prospects! We hope you found this report valuable in
understanding the organised retail assets better and helps you
further in taking informed & decisive business decisions. Always
happy to hear your views.

ANUJ KEJRIWAL
CEO & MD,
ANAROCK Retail
 About ANAROCK

ANAROCK is a leading independent real estate services company with a presence across India and the
Middle East. The Company has diversified interests across the real estate value chain and deploys its
proprietary technology platform to accelerate marketing and sales across its businesses. Over the last six
years, we have grown from being a residential focused organization to other businesses including Retail,
Commercial, Investment Banking, Hospitality, Land, Industrial and Logistics & Data Centers, Investment
Management, Research, Strategic Advisory & Valuations, Flexispaces and Society Management. ANAROCK
has a team of over 2000 certified and experienced real estate professionals who operate across all major
Indian and Middle East markets. ANAROCK has also onboarded over 35,000 established channel partners to
grow its coverage pan India.

For more information, please visit www.anarock.com.

For business enquiries, please connect with

Anuj Kejriwal
CEO & MD, Retail Services

Pankaj Renjhen
COO & Joint MD, Retail Services

Author Punit Kinariwala Concept & Design Rahini Banerjee

Manager, Retail Services Senior Associate, Retail Services

For bespoke research requirements, please connect with

Prashant Thakur
Sr Director & Head of Research

Corporate ANAROCK Property Consultants Pvt. Ltd.

Office 1002, 10th Floor, B Wing, ONE BKC, Plot No. C-66,
G Block, Bandra Kurla Complex, Mumbai 400 051

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