Ghost shopping centers’ space in top 8 Indian cities surge 59% to 13.3 million sq ft
economictimes.indiatimes.comretail assets resulting in around 13.3 million sq ft retail shopping center space being classified as 'Ghost Shopping Centers,' with a vacancy rate of 40% or higher in 2023, showed a Knight Frank India study.
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The number of such centers have risen to 64 by the end of 2023 from over 57 the previous year. Consequently, Knight Frank India estimates a loss of value amounting to Rs 6,700 crore in 2023.
Among the key markets, the National Capital Region (NCR) leads with the highest Ghost Shopping Center stock at 5.3 million sq ft, followed by Mumbai with 2.1 million sq ft and Bengaluru with 2 million sq ft. While Kolkata experienced the sharpest 237% on-year rise, Hyderabad saw a decline of 19% to 900,000 sq ft in 2023.
“The momentum of consumption, propelled by rising disposable incomes, a youthful demographic, and urbanization, tilts in favour of the organized retail sector. An enhanced retail experience remains crucial for shoppers, highlighting the significance of physical retail spaces,” said Shishir Baijal, CMD, Knight Frank India.
According to him, the Grade A malls have maintained robust occupancy, foot traffic, and conversion rates, thereby delivering value to their customers. Conversely, Grade C assets and those classified as Ghost Shopping Centres are lagging, prompting landlords to take action to rejuvenate or divest such properties.
Despite a reduction in the total number of shopping centers in tier 1 cities, there has been an increase in
