COVID-19 hits new mall supply in 2020, just 5 malls launched across India so far

Severely impacted by COVID-19, Indian cities in 2020 saw the addition of just five new malls spanning 2.75 mn sq. ft. area.

Among the cities that added the new mall supply are Gurgaon, Delhi, Lucknow and Bengaluru. The supply is far less than the previously predicted numbers.

Anuj Kejriwal, CEO & MD, ANAROCK Retail says, "Before the COVID-19-catalyzed lockdown in March, our research indicated that Indian cities were to see the new supply of approx. 54 new malls in 2020 spread over nearly 22.2 mn sq. ft. area."

"Of this, the top 7 cities were to see a new supply of nearly 35 malls spread over approx. 14.6 mn sq., ft. while Tier 2 & 3 cities were to see a new supply of 19 new malls over 7.6 mn sq. ft," he added.

According to Kejriwal, "COVID-19 added enormous pressure to the already delicately-poised Indian retail sector. The anticipated new mall supply was severely hit this year and most of it will spill over to 2021 and beyond. New completions have been deferred and leasing activity has been delayed.”

Mall Spill-over in 2021 & Beyond

Presently, data indicates that 14 new malls spread over 5.9 mn sq. ft. area will get operational by 2021-end across Indian cities, and fit-outs are underway in at least 10 of them.

Among the cities that will see the maximum new supply in 2021 are:

Mumbai - new supply of at least six new malls in 2021, spanning over 1.65 mn sq. ft. area

Bengaluru - at least 3 new malls spanning over 1.4 mn sq. ft area to get operational by 2021-end

Lucknow (UP) - launch of 2 new malls spanning over 1.15 mn sq. ft. area to deploy in 2021

Hyderabad - one new mall covering more than 0.2 mn sq. ft. area to be launched in 2021