Bengaluru sees robust retail demand in Q3

Find out which retailers took up large spaces during the quarter.

Retail space leasing in Bengaluru’s shopping malls and high streets continues to be growth-oriented, with new store launches attracting customers, increasing footfall and boosting customer engagement levels. 

In 3Q23, JLL said prominent malls like Lulu Mall, Bhartiya City Mall, Nexus Koramangala Mall and Mantri Square Mall saw retail spaces occupied by Celio, Levi’s, Arrow, Burger Seigneur, Decathlon and HomesToLife.

Here’s more from JLL:

New leases and store openings across prominent retail hubs, like MG Road, Brigade Road, Commercial Street, Church Street, RR Nagar and Panathur, were recorded in 3Q23. Retailers like Kohler, Pangeo, Twamev, a microbrewery and Ratnadeep were large space takers on the High Streets during 3Q23.  

No new mall completions during the quarter

No new mall completions in 3Q23. Sigma Mall at Cunningham Road in the Prime submarket has permanently closed in the quarter, while another mall has withdrawn its stock, and is now a captive store for one retailer.

The Phoenix Mall of Asia in Hebbal in the Suburbs, is set to open in 4Q23 and already has strong pre-commitments, which will support overall net absorption for 2023.

Rents and capital values move up q-o-q

The quarter saw rents increase by 1.2% q-o-q due to increased retailer activity for new store openings.

Capital values in Bengaluru also rose by 1.1% q-o-q due to investor interest for quality assets.

Outlook: Demand in new Shopping Malls to remain strong

Demand is expected to remain strong, with quality malls in upcoming locations finding good retailer traction, while existing malls are likely to continue to see retailers across all categories jostle for space.

Highway retail has become another new trend in Bangalore. With the success of highway retail factory outlets on the airport road, the same is now being replicated at roads such as Mysore Road and Kolar Highway. This will be a combination of retail as well as food and beverages (F&B). This trend is expected to continue in the medium term.

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