APPD Market Report Article


February 28, 2022


INR 259


A new project completion supports significant net absorption jump

  • In 4Q21, the Mumbai retail market recorded a tremendous jump in net absorption as the Jio World Drive Mall in BKC became operational with around 80% occupancy. Total net absorption stood at 322,300 sq ft in 4Q21.
  • Healthy leasing activity was recorded in the new completion in 4Q21, with brands like Apple (Mac), Diesel, Vero Moda, Starbucks, Adidas, Nike, Steve Madden and other brands by Reliance Retail taking up space in the mall.

Prime North records mall completion

  • Jio World Drive began operations in the Prime North submarket in 4Q21.
  • Jio World Drive, with about 400,000 sq ft of total leasable area, was one of the most significant completions in recent times. The mall recorded 80% occupancy levels upon opening.

Rental increase backed by the new completion in 4Q21

  • The overall rent increased, primarily on the back of the new mall completion in 4Q21. In the current scenario, many transactions are currently being closed on a revenue-share basis with minimal increases recorded in any transacted rents.
  • Rents and capital values were up for the Prime North and Prime South submarkets while remaining stable for the Suburbs during the quarter. Yields were down marginally, largely driven by premium malls which continued to see performance improve gradually with the recovery in footfall and business.

Outlook: Gradual recovery expected while COVID-19 likely to remain

  • A gradual recovery in the retail sector is anticipated, even as fresh COVID-19 concerns around the new variant have arisen. A fresh set of night curfews, lockdown-like situations could delay the recovery and cause some pain in the short term. Currently, mall shoppers are restricted to those who are double vaccinated. Theatres are also open, with only 50% occupancy levels allowed.
  • A quality retail project is likely to complete in 2022 in BKC in the Prime North submarket and expected to see healthy retailer interest. As the current wave abates, we expect recovery to resume. Fully operational malls will support improvement in footfall and retail sales. Retailers remain keen on brick-and-mortar retail even if they are looking at adopting the omni-channel model.

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

Talk to us 
about real estate markets.