Bengaluru’s total retail supply to hit 15.8m sq ft by year-end | Real Estate Asia
, India

Bengaluru’s total retail supply to hit 15.8m sq ft by year-end

Three new malls totalling 1.6m sq ft will be added this year.

According to a JLL report, the Inorbit Mall in Whitefield in Bengaluru has been permanently closed by the K Raheja Group and is being converted into office space. As a result, the city’s overall retail stock in 1Q23 was reduced to 14.28 million sq ft.

We anticipate the opening of three new malls in 2023, namely Phoenix Mall of Asia, SBR Keerthi, and SBR Lucky Mall, all of which will be located in the Suburbs submarket. These shopping malls have a combined area of 1.6 million sq ft. The city’s retail space supply is anticipated to reach 15.8 million sq ft by end-2023.

Demand for quality retail space remains strong

Increased sales and consumer footfall, mainly in the superior and good malls across the city, continue to drive retailer confidence as brands open new stores across such quality developments and even on prominent high streets with standalone flagship stores.

The major tenants at Forum Rex Walk and Garuda Mall in the Prime city submarket are PVR and Sky Jumper. Lee Cooper, Bagline and DaMENSCH have launched their new stores in Mantri Square Mall in the Secondary submarket. In the Suburbs submarket, HRX and Croma have established new stores in Phoenix Market City and Salarpuria Sattva Divinity Mall, respectively.

Overall rents and capital values increase by 2.0% and 3.3% q-o-q

Overall rents were higher q-o-q, primarily driven by superior quality malls due to increased demand from retailers who have expressed interest in opening new stores to meet customer demand.

As investor interest returns and quality malls contribute to the retail market’s momentum, the city’s overall capital values are anticipated to rise, with yields likely to show a 10–15 bps compression.

Outlook: Retail market expected to remain robust in coming quarters

Robust activity is anticipated in quality malls lined up for completion over the next 12 months, due to a strong rebound driven by pent-up demand. Malls like Phoenix Mall of Asia have already recorded between 50%–70% pre-commitment levels and will likely support healthy net absorption numbers going forward.

Urban population and millennials are developing a taste for multi-range brands, leading to increased demand for the retail sector post-COVID-19. With physical brick-and-mortar retail remaining strong, we expect to see healthy demand from domestic and multinational companies, usually in the F&B, fashion and apparel, entertainment and jewellery categories.

Note: Bengaluru Retail refers to Bengaluru's overall prime retail market.

 

Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

How Metland Indonesia deals with weaker residential purchasing power
The real estate firm continues to expand with residences that are attractive to consumers because of pricing, the ‘growing house’ concept, and sustainable features.

Event News

Event News

Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.
Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.