Seven retail projects in Delhi expected to be completed by next year

These projects will add 3 million sq ft of space to the market.

According to a JLL report, two projects totalling 0.6 million sq ft are expected to be completed in Delhi in the fourth quarter of 2022. Another seven retail projects, totalling 3 million sq ft, are expected to complete in 2023.

The majority of upcoming supply is located in the Suburbs submarket, primarily due to rising residential density, improved connectivity and developing social and physical infrastructure.

Here’s more from JLL:

Net absorption declined by 20% q-o-q with no completions in the quarter and premium malls operating at high occupancy rates. With footfall reaching pre-pandemic levels, vacancy also trended downwards in the quarter. Many domestic and global retailers have continued to expand their footprint, and online brands have also made forays into opening offline, physical stores.

The Prime South submarket saw good leasing momentum, with international brands like Victoria’s Secret and Valentino opening their first stores in the city. In the Prime Others submarket, healthy leasing was recorded in Vegas Mall, Dwarka. Net absorption was at its highest in the Suburbs submarket, with robust retail activity in the recently opened AIPL Joy Street, Gurgaon.

Rents increase marginally in quality malls

With leasing activity picking up, rents continued to grow marginally in quality malls across all submarkets.

Vacancy levels continued to decline as rising footfall and healthy sales conversions translated into a pick-up in leasing activity, while retailers sought to expand.

Outlook: Leasing activity to retain momentum

With the festive season approaching, retail sales are expected to receive a boost, aided by offers and discounts by retailers. Net absorption is expected to increase further and will continue to remain the highest in the Suburbs submarket, supported by quality supply infusion in this submarket, while nominal vacancy is expected in quality malls across the Prime Others and Prime South submarkets.

Mixed-use developments and support retail components are proving to be successful and thus expected to grow further. With new supply coming in, leasing activity is expected to grow significantly. Rents are expected to go up marginally, with vacancy levels going down alongside new retail brands coming in and existing retailers expanding their footprint.

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