Increasing Number of New Stores Push Mall Rentals Surge
09 June 2023, Mumbai
Retailers' optimistic outlook for expansion in FY24 has resulted in a 5-7% increase in mall rentals compared to the previous year, according to the feedback with mall owners in cities like Mumbai, Delhi, and Kolkata.
Bullish Retail Outlook Drives Mall Rental Increase
Although mall rents typically increase by 15% every three years, this year stands out as the retail market faces a discretionary slowdown in categories like apparel and fast food due to inflationary pressures and financial uncertainty.
However, retailers continue to add stores, expecting a rebound in discretionary spending during the festive period in the second half of the year.
High single-digit rental growth is anticipated this year, building upon a strong base compared to the previous year. The Retailers Association of India's recent survey suggests a potential improvement in consumption patterns with the onset of the festive season.
