New Delhi: The number of malls with a vacancy rate above 40%, called as ghost shopping malls, has increased from 57 in 2022 to 64 is 2023 across eight major cities in India. Further, the loss of value is estimated to be around Rs 6,700 crore due to this development.
As per a report published in The Economic Times, Knight Frank India’s latest report — Think India Think Retail 2024 — indicated an increase in the number of ghost malls to 64, totalling approximately 13.3 million square feet of gross leasable area (GLA) which were categorised as ‘Ghost Shopping Centers’ in 2023 — 58% increase in area compared to 2022. It also highlighted 238% year-on-year increase in the GLA of all shopping centers in prime Indian markets in 2023.
The Knight Frank India’s report estimated 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 major challenge faced by the retail sector poses a risk for landlords and developers in managing underperforming properties.
Among the cities, the highest number of ghost shopping centres were in National Capital Region (NCR) followed by Mumbai and Bengaluru. Further, the report pointed out that Hyderabad recorded a decline of 19% in ghost shopping center stock whereas the total number of shopping centers in Tier I cities reduced to 263 in 2023, as 16 shopping centers were shut down.
