Bengaluru to see two new shopping malls by year-end

The malls will be located in the suburbs market.

High demand for premium retail space has led to a decrease in vacancy in prominent malls in Bengaluru, primarily those completed in recent quarters. According to JLL, some of the tenants leasing space in Q3 included Ishaara, Azorte, Croma, PMJ Jewels and Burma Burma.

High streets experienced sustained leasing momentum driven by healthy demand, with anchor tenants like Maize & Malt, Bier Library, Croma and New Balance taking up space on prominent high streets.

Here’s more from JLL:

One of the malls in the Secondary submarket was withdrawn, reducing the city’s overall retail stock to 14.57 million sq ft.

While no new malls became operational in the quarter, two malls in the Suburbs submarket, SBR Keerthi and M5 Ecity Mall, are due for completion by end 2024.

Rents and capital values witness marginal q-o-q growth

Mall rents and capital values were range-bound, with a marginal q-o-q increase of 0.5% driven by sustained demand in quality malls and subsequent low availability of space.

The Secondary submarket experienced the highest rent growth at 1.6% q-o-q, due to the withdrawal of a mall, while the Prime Central and Suburbs submarkets’ rents remained unaltered.

Outlook: Demand for retail space expected to remain healthy in upcoming premium malls

Two new shopping malls, totalling 0.56 million sq ft, are slated for completion in the Suburbs submarket by end-2024. These superior-quality malls are likely to attract retailers seeking expansion in the city.

Stronger footfall in the superior-grade malls during the upcoming festive season is expected to drive the expansion spree of retailers, particularly in these malls.