Mumbai premium retail stock to grow by 2.75m sq ft between 2024 and 2028

Analysts expect the retail market to remain buoyant.

The future of Mumbai’s retail market looks more optimistic as JLL analysts see premium malls continuing to expand their offerings with the introduction of several new local and global brands and categories to enhance their customer experience.

In a report, JLL said, “The retail sector is expected to see more traction across all submarkets due to upbeat market sentiment. Around 2.75 million sq ft of supply is expected to become operational between 2024 and 2028, adding more premium stock.”

Here’s more from JLL:

Demand in the Mumbai retail market witnessed a significant increase q-o-q with the majority of leasing activity in the Suburbs submarket. Net absorption stood at 36,600 sq ft, a staggering growth of 80% q-o-q.

Most of the leasing activity was recorded in the Suburbs and Prime South submarkets. Some popular brands, like Jack & Jones, Tim Hortons, Starbucks, Blue Tokai Coffee, Reid & Taylor and H&M Home took up space across quality malls in the city during the quarter.

No new completions in Q3 2024

No new mall completions were recorded in Q3 2024. The most recent completion was Jio World Plaza, which became operational in Q4 2023 in the Prime North submarket and has maintained an occupancy level of around 70% to date.

No new mall supply is expected to come on stream in 2024, but we expect three premium malls to be operational in the first half of 2025. Otherwise, supply of around 2.75 million sq ft is scheduled to be added in the next four to five years.

Overall rents increase moderately

Rents increased at a moderate pace during the quarter, mainly because of the demand for quality malls that have high occupancy levels and attract a lot of foot traffic. As a result, landlords became firmer in their negotiation positions.

Rents and capital values rose in all submarkets, particularly in the Suburbs, driven by the closure of an average-category mall and the strong performance of other premium malls. Yields decreased slightly as capital values outpaced rent growth.