Retail sales in shopping malls across top eight cities are expected to grow 29 per cent annually to reach USD 39 billion by 2027-28 fiscal on consumption growth and the opening of new malls, according to a property consultant.
Knight Frank on Tuesday released a report 'Think India, Think Retail 2022 - Reinventing Indian Shopping Malls' at a webinar.
"The organised retail sales volume in the top 8 Indian cities is estimated to grow at a CAGR of 17 per cent from USD 52 billion in FY 2022 to USD 136 billion by FY 2028," the report said.
In the same period, the consultant said that the potential retail sales in Indian malls are estimated to grow at a CAGR (Compound Annual Growth Rate) of 29 per cent in the FY2022-28 period reaching USD 39 billion by FY2028.
Retail sales in malls across the top 8 cities -- Mumbai, National Capital Region (NCR), Bengaluru, Hyderabad, Chennai, Pune, Kolkata and Ahmedabad -- grew at a CAGR of about 3 per cent to reach USD 8 billion in FY2022.
In FY2023, the potential consumption in malls is estimated to surpass the pre-Covid-19 levels to reach USD 11 billion.
Vivek Rathi, Director Research of Knight Frank India, said that the fresh supply of retail space in malls is estimated at 50-55 million square feet in the next six years, and this will drive growth in sales at shopping centres.
He said the economic growth and increase in organised retail consumption have also been taken into account.
At the end of the first six months of 2022 calendar year, Knight Frank said the total mall stock stood at 8.6 million square metre (92.9 million square feet) spread across 271 operational malls in the top eight markets.
An incremental supply of 15.5 million square feet was added between January 2020 and June 2022, despite the disruption of the pandemic, the consultant opined.