Have you ever come across ghost malls? Well, these are not the malls that are haunted or spooky but have less than 40% occupancy. Yes, the malls which are not fully occupied are termed ghost malls. And, sadly these ghost malls are leading to huge losses amounting to $524 million. A report by Knight Frank India suggests that ghost malls have a high number in metro cities. Here’s all you need to know about them and why it is a cause of concern –
Ghost Malls In India Cities Remain Unused
From Delhi to Pune to Hyderabad, major malls in India remain unused today. Approximately eight cities in the country house ghost malls and have incurred great losses. There are numerous reasons why these malls still remain unused. A few of the reasons include –
- No diligence towards maintaining them
- Size issues
- Issues of ownership of these malls
- Lack of tenants
- The improper layout of the malls
However, the report also claims that despite efforts to revamp these ghost malls, they still remain unoccupied. As a result, the revenue collection of these malls is super low than actually expected of them. The report also says that many malls are on the verge of being shut down, and demolition of the shops inside the malls is also underway. This is also being done due to various issues like non-payment fees, other irregularities etc.
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How Can These Unused Malls Be Reused?
The report also suggests that instead of demolishing the 57 malls in various cities in India, they can be converted into other spaces that various establishments can use. As per the report, these establishments can be of various sectors food and clothing banks, event and exhibition spaces, daycare centres, training centres and more. The report shows that the number of ghost malls decreased greatly, and the overall growth of malls has improved. Despite the overwhelming nature of consumers sticking to e-commerce sites, and finally, mall spaces are increasing.
Which method would you prefer for personal shopping? Are e-commerce sites your thing or offline shopping at malls? Let us know!
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