APPD Market Report Article


December 1, 2021


INR 258.0


Net absorption increases sharply in 3Q21

  • In 3Q21, the Mumbai retail market recorded a significant jump in net absorption as malls reopened for shoppers. A total of 53,000 sq ft of net absorption was recorded in 3Q21.
  • Healthy leasing activity was recorded in the newly completed building in 3Q21, with brands like Westside and Pantaloons taking up most of the retail space in the mall.

One solitary mall completion comes online in 3Q21

  • Kohinoor Square Mall began operations in the Prime South submarket in 3Q21.
  • One mall in the Prime North submarket, which was likely to become operational in 3Q21, is now expected to be completed in the next quarter.

Overall rents increase slightly

  • The overall rents increased slightly, primarily on the back of the new mall completion in 3Q21. In the current scenario, most of the transactions are currently being closed on a revenue-share basis.
  • Market yields remained stable in 3Q21 as rents and capital values remained stable for all the submarkets during the quarter.

Outlook: Gradual recovery on the cards

  • We expect a gradual recovery in the retail sector with the reopening of malls in the city, following the relaxation of the lockdown norms. However, currently mall shoppers are restricted to those who are double vaccinated. Theatres are also likely to be opened going forward, which will support improvement in footfall and retail sales.
  • Mall completions with some pre-commitments are likely to bring new life to the sector as we expect one premium mall to become operational in 4Q21. Yet another premium mall has had its completion postponed to next year.

Note: Mumbai Retail refers to Mumbai's overall prime retail market.

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