The so called ‘Ghost shopping centers’ in India (holds more than 40 percent of their retail space available) has increased 59 per cent to13.3 million square feet of total leasable area in the year 2023.
The report released by the prominent real estate consultancy Knight Frank, “Think India Think Retail 2024” says that there are 340 shopping malls & 58 high streets in 29 Indian cities.
And there is huge upsurge in the ghost shopping malls which are increased to 64 in 2023 from 57 malls in 2022. This significant upsurge directed a value loss of Rs. 6,700 crore.
Over the Tier – I cities, the city NCR – National Capital Region holds a greatest record of ghost shopping malls at 5.3 msf which was 58 percent greater than 3.4 msf in the year 2022.
Followed by NCR, Mumbai stood at second place with 2.1 msf & Bengaluru stood at third place with 2 msf of ghost shopping centers. The only city holds a record of decline in ghost shopping centers is Hyderabad. It was dropped 19 percent to 0.9 msf in the year 2023. The high-pitched surge was in Kolkata, the city recorded a 237 percent upsurge to 1.1 msf, but from a short base of 0.3 msf in 2022.
Though the report stated the overall vacancy of shopping centres in eight key cities enhanced to 15.7 percent in 2023 from 16.6 per cent in 2022, it signifies the increasing demand in the segment of retail.
Without including the ghost shopping centers, the rate of vacancy upgraded to 7.4 percent. Shopping malls in 29 cities have the capability to create $14 billion revenue during the fiscal year 2024-2025.
On this note, the report says, "It is prudent to exclude such assets, as this stock does not attract widespread retailer interest due to various constraints, including poor location, obsolete design, strata-sold arrangements, and the dilapidation and unattractiveness of the structures”.
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