Delhi to see nearly 4 million sq ft of new prime retail space this year

A majority of the developments are in the suburbs.

A total of eight new retail developments with a combined leasable area of more than 3.9 million sq ft are expected to become operational in Delhi in 2024, according to a JLL report. 

The majority of these developments are in the Suburbs submarket, which is expected to lead on the supply front. With new supply coming on-stream, retailer leasing activity is expected to remain strong.

Here’s more from JLL:

Delhi continues to remain the preferred market for international brands entering the country; brands like Golden Goose, Galeries Lafayette and Balenciaga have committed space in DLF malls. Besides international retailers, domestic retail giants like Reliance Retail plan to open stores for their new brands. Examples include Yousta, a value apparel format, and Swadesh, a handicraft store.

Net absorption of 0.6 million sq ft in 2023

Net absorption for 4Q23 stood at 0.46 million sq ft. The Suburban submarket led leasing demand in the quarter. The newly-completed The Mall of Faridabad in this submarket saw brands like PVR, Lifestyle, Zudio and Reliance Trends taking up large spaces. Brands like Uniqlo, Time Zone and Deerika Hypermart also entered Faridabad, opening their first stores in this mall.

Brioni and NARS Cosmetics leased space at The Chanakya and Select Citywalk, respectively, to open their first stores in the country. Other new entrants in the city included Tira, Reliance Retail’s omni-channel platform for beauty and cosmetic products, which leased space at DLF Avenue, and American QSR Popeyes, which leased space in Pacific Group Mall of Faridabad and Pacific Premium Outlets.

Two new retail developments go operational in 4Q23

Two retail developments with a cumulative leasable area of 0.5 million sq ft became operational in the quarter. Both of these developments are in the Suburbs submarket. This includes Pacific Group Mall of Faridabad in Faridabad, which was heavily pre-committed by premium brands. The mall has a gross leasable area of around 0.4 million sq ft, making it the biggest mall in Faridabad.

The other development was a newly-refurbished building on MG Road, Gurgaon, with a leasable area of around 0.1 million sq ft, and was entirely taken up by Reliance Centro. In 2023, four Grade A retail developments with a combined gross leasable area of over 1 million sq ft were completed. Of the new supply, 70% was in the Suburbs submarket and the rest were in the Prime South submarket.

Rents up slightly across major malls q-o-q

With vacancy levels coming down further, rents in Prime malls continued to rise. Overall Delhi NCR’s retail rents in 2023 were up by 6.5% y-o-y.

Going forward, with the leasing activity expected to pick up further, rents are likely to remain north-bound, albeit driven by existing Prime developments and upcoming projects of similar quality.

Note: Delhi Retail refers to Delhi NCR's prime retail market.