Retail space demand remains stable in the city

• In Q3 2024, a net absorption of 0.14 million sq ft was recorded. Leasing activity was concentrated in the Suburbs submarket, making up half of the total area leased.
• Leasing activity in the quarter was led by F&B, home furnishing and entertainment. Miraj Cinemas opened a theatre at Sekaran Mall in Perumbakkam.

Strong supply in coming quarters

• No new mall stock was added to the city supply.
• In the next five years (2024 to 2028), 5.47 million sq ft of new mall supply is projected to come on stream, mostly in the Suburbs.

Marginal q-o-q growth in rents and capital values in the city

• Consistent leasing activity throughout the city drove a 0.7% q-o-q rise in rents in the quarter.
• Demand and rents for high-quality assets remain strong. Unlike malls, prominent high streets are more successful in commanding rent increases. Capital values are trending similarly.

Outlook: Strong retail mall supply in the city

• As more and more national and regional retailers set up shop in the city, the demand for physical retail assets is likely to stay high. The future of the leasing market is predicted to be dominated by retail malls and high streets.
• An estimated 5.47 million sq ft of mall space will become available in the next five years, from 2024 to 2028. During this time, the OMR will see the construction of two big malls, Lulu Mall and Forum Mall.