The calendar year was to see the launch of 54 new malls spanning over 22.2 million sq. ft, according to pre-Covid estimates
As the business in malls has not yet recovered to pre-covid levels, mall development is moving at a snail’s pace.
The calendar year was supposed to see the launch of 54 new malls spanning over 22.2 million sq. ft, as estimated by pre-Covid. Only 5 malls covering 2.75 million sq. ft were completed, however.
These new mall emerged in Gurgaon, Delhi, Lucknow, and Bengaluru, according to Anarock Retail data.
The still-to-recover business in malls has halted the construction process. Malls remained closed for longer after the lockdown.
As of August, last year’s sales in malls were 60%, though the footfalls were much lower. Malls, however, expect the festive season to take sales to 80%.
“Since shopping malls reopened nationwide, industry and mall developers have noticed more serious buyers walking in with a set agenda of what to buy.
While dwell time has declined, ticket size has increased dramatically.
During the Navratri and Diwali season, shopping malls across the country reported a week-on-week increase in footfalls and witnessed continued growth during weekends. We hope to average 80% of sales,” said Amitabh Taneja, chairman of India’s Shopping Centers Association.
Considering the slower pace of mall development, many launches would be pushed to 2021.
Covid-19 added enormous pressure to India’s already delicately-poised retail sector.
This year, the anticipated new mall supply was hit hard and most of it will spill into 2021 and beyond. New completions were deferred and leasing activity delayed,” said Anuj Kejriwal, Anarock Retail’s CEO and MD.
However, even in 2021, only 14 new malls spread over 5.9 million sq ft are likely to operate.