Here are the new malls to watch out for in Bengaluru in the next two years 

Over 4 million sq ft of new supply is expected to come onstream in the Suburbs submarket alone.

No new malls were completed in Q3 2022 in Bengaluru, but the Prestige Falcon City Mall on Kanakapura Road in the Suburbs submarket is expected to open in the fourth quarter of the year. The mall has already achieved 50%-55% pre-commitment.

According to a JLL report, in the Suburbs submarket, 4.1 million sq ft is expected to come on stream between 2023 and 2024. The VR Arena by Xander, Phoenix Mall of Asia by Island Star Mall Developers, and other projects like Forum 13 Degree North and Forum Sarjapur Road are expected to complete by 2024.

Here’s more from JLL:

Improved footfall and sales in shopping malls are spurring retailer demand for new store openings, increasing store count. Quality mall completions have seen a healthy response from retailers as business and consumer sentiment remain upbeat. The upcoming supply of malls, clearly in response to increased demand, demonstrates that physical retail is still a dominant force.

Retailers from the fashion & apparel, home & decor, furniture, entertainment, and F&B sectors have contributed significantly to the city’s quarterly leasing activity. Major leases during the quarter were by Puma, US Polo and House of Pataudi, in prominent malls in the city.

Overall rents and capital values have increased slightly q-o-q

Rents have increased by 0.5% q-o-q overall as relaxed COVID-19 restrictions have increased footfall, resulting in developers pushing to increase rents in prominent malls and high streets.

Overall capital values were also up by 0.9% q-o-q, with an increased supply of high-quality assets supporting the growth in asset values.

Outlook: Retail leasing activity expected to resurge in the coming year

Rents in organised malls are expected to rise in the upcoming quarters as malls reach full capacity and experience strong sales growth, with footfall in some cases exceeding pre-pandemic levels. Upcoming quality malls are also expected to garner healthy traction from retailers, especially in underserved retail corridors in the Suburbs submarket.

Among retailer categories, fashion & apparel, home & decor, and F&B retailers are expected to continue expanding their physical sales networks, with a focus on enhancing flagship stores.

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