Number of ghost malls rising in India, Delhi NCR tops the list, followed by Mumbai, Bengaluru: Report
Knight Frank India's latest report, 'Think India Think Retail 2024', sheds light on the growing phenomenon of ghost shopping malls across major Indian cities. The report indicates a significant increase in the number of such malls, which are defined by a vacancy rate exceeding 40%. According to the report, the number of ghost shopping malls rose from 57 in 2022 to 64 in 2023, reflecting a concerning trend in the retail sector.
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Rise in Ghost Shopping Malls:
The report reveals that 64 shopping malls, totaling approximately 13.3 million square feet of gross leasable area, were categorized as 'Ghost Shopping Centers' in 2023. This marks a 58% increase in area compared to the preceding year. The National Capital Region (NCR) accounted for the highest stock of ghost shopping centers, followed by Mumbai and Bengaluru. Hyderabad, however, recorded a decline of 19% in the ghost shopping center stock.
Impact on Value:
Knight Frank estimates the loss of value due to the rise in ghost shopping centers to be around Rs 6,700 crore or USD 798 million in 2023. This indicates a significant financial impact on the retail sector, highlighting the challenges faced by landlords and developers in managing underperforming properties.
Expert Opinion:
Shishir Baijal, Chairman & Managing Director of Knight Frank India, emphasized the importance of an enhanced retail experience for shoppers. He stated, "Grade A malls have notably excelled, maintaining robust occupancy, foot
