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Ghost Malls rising in metros, highest in NCR

8 May 2024

These are shopping malls with extremely low footfalls and a property vacancy rate above 40%.

India is witnessing a rise in the number of ghost shopping malls. As per a recent Knight and Frank report, there were 64 such shopping centres in 2023 compared to 57 in 2022, especially in NCR, Bengaluru, and Mumbai. Hyderabad, on the other hand, saw a decline in such spaces by 19%.

More consumers preferring to shop online or in bigger malls that offer more enhanced overall shopping experience. But this hasnt stopped the mushrooming of malls.

Along with the number of ghost malls, the Gross Leasable Area (GLA) spiked by 288% year-on-year in 2023. Its financial impact on retailers, landowners, and developers can be pinned at around ₹6,700 crore.

The small malls are facing challenges in attracting footfalls and tenants to occupy retail space. As a result, shopping centres are being shut down by developers to undertake better promising commercial and residential projects.

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