Malls registered high demand this year, trend likely to continue in 2024

In 2023, the surge in demand for retail real estate is evident with the opening of over five million square feet of grade A malls, marking the highest growth in seven years, as reported by The Economic Times. Industry experts anticipate an additional eight million square feet to become operational in 2024, attracting investments exceeding US$ 2.4 billion (Rs. 20,000 crore) over the next 3-4 years. Key developers like DLF, Prestige, and Phoenix have initiated the next phase of expansion in response to heightened interest from leading retailers aiming to broaden their footprint nationwide. Mr. Saurabh Shatdal, a prominent industry insider, notes the increased momentum in retail real estate, primarily fuelled by consumption-led growth in the Indian economy.

Noteworthy players such as Reliance Retail, PVR, Aditya Birla Fashion, and Tata Trent have expanded their store count, aligning with the upward trajectory of their revenues. He emphasizes that landowners possessing quality retail assets and sound financial standings stand to gain significantly from this bullish trend, especially by venturing into tier-I, tier-II, and tier-III cities. Since the lifting of Covid-19 restrictions, the resurgence of physical shopping trends has emboldened mall operators to pursue expansion with confidence. Experts highlight that no retailer wishes to be left behind in this expansive wave, with comprehensive plans to establish a presence in tier-2 markets.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.