Net absorption of 0.24 million sq ft in H1 2024

• In the first six months of 2024, retail activity across Delhi NCR malls remained strong, with a gross leasing of 0.51 million sq ft recorded. For gross leasing in H1 2024, the Suburbs led with 54%, followed by Prime South with 31%.
• Net absorption of 0.14 million sq ft was recorded in Q2, up by 41% q-o-q. The majority of the fresh leasing took place in mixed-use developments like Worldmark 65 and Ireo Grand View High Street in Gurgaon; Skymark One and Gulshan One29 in Noida.

No new malls become operational in Q2 2024

• Six underperforming malls with a cumulative area of 1.14 million sq ft were withdrawn from the stock, which brought the Grade A retail mall stock down by 4% to 25.6 million sq ft at the end of the quarter.
• With strong leasing during the first half of the year, the overall vacancy levels came down to 11.5% at end-H1 2024, down from 13.3% at end-2023.

Rents go up slightly in Q2 2024

• In Q2 2024, rents increased slightly across all major, well-performing malls. With underperforming malls being withdrawn from the stock, the overall rents in Q2 2024 went up by 3.5% compared to the previous quarter.
• One investment transaction was recorded during the quarter wherein Brookfield India REIT acquired Bharti Realty’s stake in its commercial assets, including two mixed-use retail assets: Worldmark 65 in Gurgaon and Worldmark Aerocity in Delhi.

Outlook: Retail leasing to remain strong, backed by quality supply

• By 2025, new retail supply of 4.3 million sq ft is expected to come on stream in Delhi NCR, the majority (81%) of which is in the Suburban submarket. Most of the prominent retailers have pre-committed spaces in these developments.
• A lot of international brands are planning to set up stores in India, and domestic retailers are expanding their footprint and introducing fresh concepts; thus, retail leasing activity across Delhi NCR is expected to remain strong.