Knight Frank forecasts sales in malls in India to touch $39 billion by FY28

13 Sep 2022 , 03:24 PM

A property expert predicts that retail sales in the top eight cities would increase by 29% yearly to reach USD 39 billion by the 2027—28 fiscal year, driven by rising consumption and the building of new malls.

A paper by Knight Frank titled “Think India, Think Retail 2022 – Reinventing Indian Shopping Malls” was made public on Tuesday at a webinar. The analysis predicted that the organized retail sales volume in the top eight Indian cities would increase at a CAGR of 17% from USD 52 billion in FY 2022 to USD 136 billion by FY 2028.

The expert stated that throughout the same time period, potential retail sales in Indian malls are predicted to increase at a CAGR (Compound Annual Growth Rate) of 29%, reaching USD 39 billion by FY2028.

Mumbai, the National Capital Region (NCR), Bengaluru, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad were the top 8 cities for mall retail sales, and they increased at a CAGR of roughly 3% to reach USD 8 billion in FY2022.

Mall potential consumption is anticipated to approach pre-Covid-19 levels in FY2023, rising to USD 11 billion. According to Vivek Rathi, Director of Research at Knight Frank India, there would be a 50-55 million square foot increase in new retail space in malls over the next six years, which will result in higher sales at shopping centers.

He said that the expansion of organized retail consumption as well as the economy had been considered. According to Knight Frank, the total mall stock at the end of the first half of the 2022 calendar year was 8.6 million square meters (92.9 million square feet), distributed across 271 active malls in the top eight markets.

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