Retail Space Supply Drops 57% in Top 7 Cities

The supply of new retail spaces in shopping malls in the top seven cities of India has dropped by 57% to 0.9 million square feet during the first quarter of 2024.

This decline is due to delays in construction and the challenges developers face in creating Grade A retail spaces.

Despite this, the demand for retail spaces remains high, with gross leasing standing at 4.1 million square feet in the first half of 2024.

The vacancy rates have dropped to 6.7% in the first half of 2026.

Developers struggle with issues like land availability, rising costs, approval delays, and complex construction processes, while retailers find it difficult to secure suitable spaces due to the limited supply.