APPD Market Report Article
DelhiSeptember 4, 2023
Dr Samantak Das, Head of Research, India
Demand remains strong, backed by rising consumption
- Leasing demand remained strong and leading retail brands continued to expand their store portfolio. Suburbs led the leasing demand in the quarter. In the Suburbs submarket, major deals included Le Marche and Lifestyle at The Grand Venice Mall, Punjab Grill and Cafe Delhi Heights at Worldmark 65, Haldiram’s and Hydrama at Reach Airia, Cafe Dori and Bellagio at Ireo Grand View High Street.
- In Prime South, brands like Pret A Manger and H&M Home leased space at Select Citywalk. Pacific Premium Outlets, Jasola, saw the opening of F&B brands like Cafe Delhi Heights and Gola Sizzlers. In the Prime Others submarket, restaurant chains like Gravity Space Bar and House of Royals leased areas at Pacific Mall, Netaji Subhash Place; La Martina and Chique opened up stores at Vegas Mall, Dwarka.
No completions and robust demand leads to vacancy declining q-o-q
- No new malls became operational in the quarter.
- In the coming months of 2023, four malls are expected to go operational, all in the suburbs. A lot of national-level developers have announced their plans to launch malls in the city.
Rents largely stable q-o-q across Delhi NCR
- Rents increased slightly in major malls, though they remained unchanged across all other malls. Rents in premium malls went up slightly due to limited or no vacancy amid strong retailer demand.
- Trident Group acquired Shipra Mall in Ghaziabad for INR 550 crore.
Outlook: Leasing demand to remain strong, backed by strong supply
- International retailers like Galeries Lafayette, Dunhill, Kiabi, Foot Locker, Shein, Brands for Less, Jamba and The Coffee Club have announced their plans to enter the country. F&B brands like Lavazza and Papa Johns are planning to make a comeback. Domestic brands like Nykaa, Saundh, Chique plan on expanding their offline presence. Leasing momentum remains strong in the city.
- Delhi NCR has a robust supply pipeline, with many developers planning or already in the works for setting up malls. Prestige Group plans to foray into Delhi NCR’s retail scene by setting up a mall, while Ingka Centres has already scheduled to build two malls, one each in Gurgaon and Noida. Others, like DLF, Unity Group and Pacific Group, also have plans to expand their retail footprint.