Demand down q-o-q with no mall completions in Q4 2024

• Demand in the Mumbai retail market witnessed a moderate decrease q-o-q since there were no mall completions in Q4 2024. Net absorption stood at 29,050 sq ft with major leases in Q4 recorded in the Suburbs submarket.
• Most of the leasing activity was recorded in the Suburbs and Prime South submarkets. Some popular brands, like EL&N London, Levi’s, Harajuku, Laderach, Si Nonna’s, Nitori and Uniqlo took up space across quality malls in the city during the quarter.

No new mall completions in Q4 2024

• No new mall completions were recorded in Q4 2024. The most recent completion was Jio World Plaza, which was completed over a year ago.
• We expect three premium malls to become operational in the first half of 2025. Supply of around 3.75 million sq ft is otherwise scheduled to come on stream in the next four to five years.

Overall rents increase moderately q-o-q

• Rents increased at a moderate pace during the quarter, mainly because of the demand for quality malls that have high occupancy levels and attract a lot of foot traffic. As a result, landlords became firmer in their negotiation positions.
• Rents and capital values rose in all submarkets q-o-q, particularly in the Suburbs and Prime North, driven by the closure of average-category malls and the strong performance of other premium malls. Yields decreased slightly as capital values outpaced rent growth.

Outlook: Retail market to remain robust

• The future of the retail market looks more optimistic as we see premium malls continuing to expand their offerings with the introduction of several new local and global brands and categories to enhance customer experience.
• The retail sector is expected to see more traction across all submarkets due to upbeat market sentiment. Around 3.75 million sq ft of supply is expected to become operational between 2025 and 2029, adding more premium stock.