New Delhi: A new assessment by real estate advisory firm Knight Frank has revealed that close to 20% of 365 malls spread across 32 Indian cities have become ghost malls or deteriorated into near-abandoned or fully inactive properties. The malls where vacancies exceed 50% are described as ghost malls.

According to the study, these underperforming centres carry the possibility of generating more than Rs 350 crore in rental income if revived. From the total shopping centre stock of 134 million square feet reviewed by the consultancy, 74 properties – totalling 15.5 million square feet – fall into the ghost mall category, pointing to large volumes of unused retail space. Besides exceptionally high vacancies, many such sites are grappling with outdated facilities, poor brand mix, and a loss of shopper relevance.

The report highlighted that “within this pool, 15 centres with a combined area of 4.8 mn sq ft have been identified as high-potential assets that could deliver as much as Rs 357 crore in annual rental revenues if reinvigorated effectively.”

The report further said, “Of the shortlisted assets with clear reinvigoration potential, Tier-I cities hold an opportunity of Rs 236 crore in annual rentals, while Tier-II cities add another Rs 121 crore to the reinvigoration landscape.”

The findings suggest that some of India’s earliest and previously well-established malls have been unable to adapt to shifts in consumer habits, brand movements, and the growing preference for experiential retail formats.

Mysuru, Vijayawada and Vadodara – with vacancy levels of 2%, 4% and 5% respectively – stand out as the top-performing markets, each maintaining high occupancy and well-balanced tenant profiles. Conversely, vacancy rates of 49% in Nagpur, 41% in Amritsar and 34% in Jalandhar underscore the problems arising due to excessive supply, planning lapses and weak anchor tenants. Across all 32 cities covered, retail vacancy averages 15.4%.

In a separate development, Blinkit CEO Albinder Dhindsa said that India’s quick commerce industry is moving towards a rapid shakeout as companies are running short on cash and aggressive fundraising strategies are becoming more visible.

He warned that businesses will soon be compelled to confront mounting losses, saying, “Usually when this kind of imbalance exists, the correction is very swift. It often catches people by surprise.” Dhindsa told Bloomberg, “The pendulum has already swung once from skepticism to exuberance. Whether the correction comes in three months or six months or next week, I do not know, but it will come.”

His remarks coincided with Swiggy launching a qualified institutional placement (QIP) through which it aims to secure about Rs 10,000 crore, while another competitor, Zepto, has shifted to public-company status and is preparing for an IPO next year.

However, speaking to Business Standard, expressed mixed reactions to the ongoing capital raises as quick commerce players expand. Aakash Agrawal, head of digital and new age business at Anand Rathi Investment Banking, cautioned that in any space where capital inflow is high and fast, there can be concerns of overcapitalisation and lack of profitability.

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