APPD Market Report Article


February 22, 2024

Dr Samantak Das, Head of Research, India


INR 185


Healthy traction across prominent malls

  • Retail leasing activity in Bengaluru’s prominent malls and high streets is thriving, backed by mall openings, new store launches and increased footfall during the festive season. In 4Q, the newly-operational Phoenix Mall of Asia and Bhartiya City Mall, which started operations in 2021, saw retail activity from brands such as Inox, Hamleys, Fun City, Loyal World Market, Lifestyle, Zara and Puma.
  • Fresh leasing and store openings continued across prominent retail hubs, like Vittal Mallya Road, JP Nagar, Indiranagar, Jayanagar and Whitefield during the quarter. Retailers like PMJ Jewels, Pantaloons OnLoop, Yuki, Star Bazaar and Intune were large space takers on the high streets.  

A prominent mall completion in 4Q

  • Phoenix Mall of Asia started its operation in the Hebbal corridor, while three other malls have had stock withdrawn as they were repurposed for traditional offices and co-working spaces.
  • A few of the malls slated for completion during 2024 include M5 Ecity Mall at Electronic City Phase 2 and Brigade Cornerstone Utopia Mall at Varthur Road, both located in the Suburbs submarket.

Rents and capital values up q-o-q

  • The fourth quarter saw a 3.5% q-o-q increase in rents due to the opening of a new mall and increased rents in existing prominent malls.
  • Capital values, too, increased by 3.1% q-o-q due to increased investor interest in quality assets.

Outlook: Sustained demand for prominent malls

  • Retailers are likely to continue expanding their footprint in active malls and high streets in the city, across categories like fast fashion, home decor, furniture, entertainment, jewellery, footwear and F&B.
  • Four new shopping malls totalling around 1.2 million sq ft are expected to start their operations in the Suburbs submarket during 2024.

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

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