A disturbing trend is emerging in India’s retail landscape: the emergence of “ghost malls.” The number of abandoned shopping centres that have vacant stores and unsettling quiet is concerning. This is concerning, according to a recent report from real estate expert Knight Frank.
Vacant Space Haunts Retail Landscape
According to the report, India’s empty retail space has risen drastically by 230% every year, reaching a stunning 13.3 million square feet in 2023. This is consistent with a significant increase in the number of ghost malls—retail spaces with vacancy rates greater than 40%. The number of Ghost Malls increased dramatically from 57 in 2022 to an unnerving 64 by the end of 2023.
Ground Zero for Ghost Malls
The report shows that this unsettling trend varies by area. Delhi NCR, or the National Capital Region, is now known as the ghost mall hotspot. There is now 5.3 million square feet of unoccupied retail space in this region, a staggering 58% increase in empty space. Though not as dramatically as in Delhi NCR, other big cities like Bengaluru and Mumbai also experienced a rise in ghost malls.
What’s Causing the Chill?
The study pinpoints a number of causes for the growth in ghost malls. One significant offender is the rise in popularity of internet shopping. Physical establishments are seeing a decline in foot traffic as consumers increasingly choose the ease of online shopping. The drive towards bigger, more experiential retail malls is another issue. Little, duller shopping centres are just becoming less and less popular.
A Silver Lining for Some?
Report suggests, even at the darkest of times, developers and institutional investors may find opportunities to breathe new life into or repurpose these spectral assets. In order to give these ghostly areas new life, the research advises taking advantage of opportunities for repurposing or redevelopment projects.
Top Malls Remain Thriving
The report shows that successful shopping centres are seeing a positive trend, despite the rise in ghost malls. Grade A malls are doing very well; they usually have well-known brands and provide a high-end shopping experience. These shopping centres have strong foot traffic from customers and high occupancy rates. This suggests that there is still a substantial demand for attractive and well-run retail locations.
