Delhi to see over 4m sq ft of new retail supply in the next 15 months | Real Estate Asia
, India

Delhi to see over 4m sq ft of new retail supply in the next 15 months

A majority of the supply will be in the suburbs.

With the festive season and end-of-season sales approaching, footfall and sales are expected to go up further.

According to a JLL report, Delhi NCR is the preferred destination for international brands entering India; brands like Galeries Lafayette and Balenciaga have already leased spaces in Prime South malls to open their first stores in the country. Leasing momentum is expected to remain strong.

Here’s more from JLL:

In the next 15 months, supply of over 4 million sq ft is expected to come on stream, 88% of it in the Suburbs submarket. Apart from this, the country’s biggest real estate developer, DLF, has also announced that it will start the construction of its 2.5 million sq ft mall in Gurgaon in the quarter. The Grade A retail supply pipeline is expected to remain strong going forward.

Healthy leasing activity across all major malls in Delhi NCR

The Suburbs led the leasing market. Major deals included Reliance Trends at Ambience Mall, Gurgaon; Miraj Cinemas at Great India Place, Noida; Deerika Hypermart at Pacific Mall, Ghaziabad; Le Marche at Pebble Downtown, Faridabad. In the Prime Others submarket, brands like Bath & Body Works and Charles & Keith, leased spaces at Pacific Mall, Tagore Garden and Vegas Mall.

Retailers La Vie En Rose and Laderach leased spaces in premium DLF malls to open their first stores in the country. The Prime South submarket saw a lot of premium F&B brands taking up space, such as Pincode by Kunal Kapur and China Bistro at Select Citywalk; Pizza Express and Beer Cafe at Pacific Premium Outlets. Luxury retailer Gucci leased space at DLF Emporio for expansion.

No completions in 3Q23

No new malls were completed in Delhi NCR in the quarter. In the next quarter, three malls with a combined leasable area of over 1 million sq ft are expected to become operational. All three malls are in the Suburbs submarket.

The Mall of Faridabad by Pacific Development Corporation, which is expected to be operational in 4Q23, is highly pre-committed by premium retail brands Gap, Asics, Timezone, PVR, Starbucks and others.

Rents up marginally across Delhi NCR

Rents have increased marginally across all major malls in Delhi NCR. Retail rents in the Suburbs submarket have gone up 4% q-o-q. The Prime Others submarket saw rents go up by 3% compared to the previous quarter.

Along with the rents, capital values have also increased marginally across all major submarkets in Delhi NCR.

Note: Delhi Retail refers to Delhi NCR's prime retail market.

 

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