Surge in Mall Space Expected Across Indian Cities in 2024, Led by Hyderabad
Chennai: Around 8 million sq ft of mall space is expected to become operational in 2024, 34 per cent higher than last year. The highest addition will be seen in Hyderabad.
In 2023, top eight cities had added 5.95 million sq ft of mall space and in 2024 this is expected to go up by 8 million sq ft. Of this, approximately 3.5 million square feet of cumulative retail mall supply will be operational by the year end in Hyderabad. Close to 1.2 million square feet of Grade A mall supply will become operational across two suburban micro-markets of Mumbai, according to Cushman and Wakefield.
In the case of Delhi, there were no new completions in the first quarter of the year. However, for the current year, about 1msf of new mall supply could get added. Chennai did not see any new mall additions during the quarter and is expected to witness a mall supply of nearly 2 msf over the next two years.
Bengaluru recorded no new mall completion in Q1 and a greenfield mall of 0.9 msf is under-construction at Kanakpura Road and is expected to enter the market by the end of the current year. Pune and Kolkata will add 0.25 msf and 0.35 msf mall space respectively.
Meanwhile, in the industrial and logistics space, supply addition is expected to normalize in 2024 with a projected range of 35-37 million sq ft, after witnessing a peak in the previous year. According to CBRE, Delhi-NCR, Bangalore, Chennai, and Mumbai are anticipated to lead in supply addition, with a higher share of development completions supported by institutional funds. Cities like Mumbai, Bangalore, Hyderabad, Pune, and Ahmedabad are expected to drive demand for industrial and logistics space.
