As per a report, small malls and shopping centres are increasingly turning into ghost malls. The data suggests that the number of ghost malls rose to 64 in 2023 from 57 in 2022. This shows how many people are turning to online shopping and larger shopping centres these days. These numbers are particularly high in metro cities like Delhi NCR, Mumbai, and Bengaluru.
What Is A Ghost Mall & How It Is Affecting Indian Markets?
Any mall property with a vacancy rate of more than 40% is called a ghost mall. Now, as per a report by Knight Frank India, Think India Think Retail 2024, the number of ghost malls in India has increased significantly in the last few years. Statistically, the numbers went up from 57 in 2022 to 64 in 2023. These increasing numbers show the hard time small shopping centres are facing in attracting tenants and maintaining footfall.
The report shows that people are now turning to online shopping and larger malls for a better shopping experience. It also shows a 238% year-on-year increase in the Gross Leasable Area (GLA) of all shopping centres in prime Indian markets in 2023. This fall in numbers is quite concerning. According to experts, it can lead to job losses and economic dislocation, especially for small retailers and service providers.
The report further showed that there is a sharp rise in low-performing retail assets in India. About 13.3 million square feet of shopping space remain vacant in 2023. This resulted in the loss of ₹67 billion of revenue for developers. The report further suggested that around 132 small shopping centres are on the verge of turning into ghost malls.
Delhi NCR Tops This List, Hyderabad Shows Surprising Results
Delhi emerged at the top of the list of the cities with the most ghost malls. Delhi was followed by Mumbai and Bengaluru on this list. The report is based on a survey of 29 top cities in India. The total number of shopping malls in Indian cities was clocked at 263 in 2023. While there were eight new retail centres added to the list, about 16 shut down. However, Hyderabad seemed to have reversed its ghost mall numbers in 2023. The city recorded a decline of 19% in its ghost shopping centres.
While online shopping has become a major part of our lives, going out and shopping has a joy of its own! When was the last time you visited a mall? Let us know in the comments!
Cover Image Courtesy: Canva (representative image)
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