APPD Market Report Article


December 1, 2021


INR 257.5


Improvement in net absorption recorded in 3Q21

  • Net absorption increased by 1850% q-o-q and 1128% y-o-y, driven by the new mall completions in Suburban and Prime Others submarkets coming onstream with good pre-commitments. With the easing of COVID-19 restrictions and increased vaccination rates, shoppers returned and malls witnessed higher footfall.
  • Westside, Marks & Spencer, Hamleys, Stanmax and Reliance Trends leased space in the newly completed Pacific Mall in Netaji Subhash Place in Prime Others submarket. Some prominent store openings during the quarter included ‘Nike Door’ at DLF Mall of India in Noida and ‘The Collective’ at Pioneer Boulevard in Gurgaon.

Three retail developments complete in 3Q21

  • Three retail developments were completed in 3Q21, contributing 0.68 million sq ft to the overall stock. These developments consisted of Pacific Mall in Delhi with 0.3 million sq ft, ‘M3M Urbana Premium’ a mixed-use office and retail development with 0.23 million sq ft of retail space in Gurgaon and ‘One Skymark’ retail block with 0.15 million sq ft in Noida.
  • No new completions are lined up for the last quarter of 2021. In 2022, five retail developments with a cumulative area of 1.06 million sq ft are projected to become operational in the Suburban submarket.

Rents decline marginally in 3Q21

  • Rents declined marginally in some strata-sold, poorly managed malls across Delhi NCR. Superior Grade malls with low vacancy levels saw stable rents underpinned by increased footfall and sales recovery. Vacancy rate remained stable with the newly completed malls opening with good occupancy levels.
  • The increase in vaccination rate and effective containment of the COVID-19 pandemic will encourage retailers to expand their footprint in the future. However, non-profitable stores will be closed or resized to increase profitability and efficiency as part of a business strategy.

Outlook: Positive consumer sentiment to drive retail sales

  • Leasing activity will continue to rise with the increase in vaccination rate and the return of shoppers, which is supporting the improvement in retail sales. In the upcoming festive season 4Q21, demand is expected to get a boost by further increases in footfall in retail developments.
  • The majority of the upcoming retail projects are a part of mixed-use developments, having retail blocks with commercial towers and serviced apartments. In recent years, Delhi has witnessed a couple of transit-oriented malls. These developments will continue to grow with the improving infrastructure and connectivity.

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

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