PTI New Delhi

India's seven major cities will witness a fresh supply of 16.6 million (166 lakh) sq ft of prime retail spaces in shopping malls by the end of the next year, according to Anarock. Real estate consultant Anarock data shows that over 16.6 million (166 lakh) sq ft of Grade A supply will be added in new shopping malls, likely to open during the 2025 and 2026 calendar years.

Hyderabad and Delhi-NCR will command the lion's share in fresh supply at 65 per cent. The other five cities are Mumbai, Kolkata, Chennai, Bengaluru and Pune. "The surge is also prompted by a perceivable shortfall in new supply of Grade A malls across cities. The previous three-year data trends show that new mall supply in the top 7 cities did not match the overall leasing," Anuj Kejriwal, CEO & MD of Anarock Retail, said. In 2022, these seven cities witnessed about 2.6 million (26 lakh) sq ft of new Grade A retail supply, while leasing clocked in at 3.2 million (32 lakh) sq ft.

Likewise, 2023 saw 5.3 million (53 lakh) sq ft of new Grade A mall supply, while 6.5 million (65 lakh) sq ft space was leased. The demand-supply gap widened further in 2024 due to approvals slowing down because of general and state elections. "New Grade A mall supply in 2024 was just 1.1 million (11 lakh) sq ft, while leasing was 6.5 million (65 lakh) sq ft," said Kejriwal. While the estimated new supply to some extent raises the spectre of potential oversupply, current absorption trends are reassuring, the consultant said.