Delhi to see 3.7m sq ft of new Grade A retail supply next year

A majority of this stock is pre-committed.

In a report, JLL said Delhi’s new Grade A retail supply of 3.7 million sq ft is expected to become operational in 2025, with a big portion of this being pre-committed. A large portion (78%) of this upcoming supply will be in the Suburbs, primarily in Gurgaon.

“Many international retailers remain on the lookout for space in prominent malls in the NCR, along with home-grown Indian brands scaling up and expanding their physical store counts. This should keep retail activity quite strong,” the report added.

Here’s more from JLL:

Around 72% of the quarterly gross leasing was in the Suburbs, followed by Prime South. Domestic retailers actively introduced newer formats with Aditya Birla launching its new jewellery brand ‘Indriya’ and Reliance Retail bringing its value format ‘Yousta’ to NCR.

Brands like Foot Locker, Aquazzura, Baccarat and Diptyque leased space in Prime South malls to open their first stores in the country. The quarter saw direct-to-consumer brands like Ed-a-Mamma, Oceedee, Isharya and Kilol taking up space in top malls.

New supply of 0.23 million sq ft becomes operational in Q3

Good Earth Sixty9 in Gurugram, with a leasable area of 0.23 million sq ft, became operational during the quarter. The mall has not been fully leased; thus the overall retail vacancy in NCR rose by 30 bps q-o-q to 11.8%.

No new retail development is expected to be completed in the last quarter of 2024.

Retail rents in Delhi NCR up by 3.4% q-o-q

Rents in the Prime Others submarket saw the highest q-o-q increase, with rents going up 6%. There was no vacancy in quality malls and limited quality supply planned in this submarket.

Rents in the Prime South submarket went up by 5% q-o-q, with international retailers keen on leasing space here, coupled with malls in this submarket having limited to no vacancy and no planned upcoming supply as well.