Who are the major tenants in Delhi’s new malls?

One of the malls is dominated by premium brands.

Net absorption for the first quarter in Delhi’s retail property sector stood at 0.38 million sq ft, up 118% q-o-q and 208% y-o-y, according to a JLL report. 

The new Pebbles Downtown mall in Faridabad saw tenants like Pantaloons, Lifestyle, Max and Chunmun, open anchor stores. Starbucks leased space in the mall to open its first store in this suburb, as well as in Shipra Mall for its first store in the Ghaziabad suburb.

Here’s more from JLL:

The other new mall, Pacific Premium Outlets, is predominantly occupied by premium brands. Brands like Steve Madden, Birkenstock, Calvin Klein, Tommy Hilfiger and Collective opened their discount stores in the mall. Gulshan One29 in Noida saw fresh leasing, mostly by F&B brands. Apple leased 10,000 sq ft at Select Citywalk in Saket to open one of its first self-owned stores in the country.

Two new malls go operational in the quarter

The Pacific Premium Outlets in the Prime South submarket, with a total built up area of 0.3 million sq ft, went operational. The mall was heavily pre-committed by premium retailers. All the stores in the mall are discount outlets, meaning that all the brands will always be discounted throughout the year.

Pebbles Downtown, Faridabad, in the Suburbs submarket, is a 0.22 million sq ft development that has also gone operational. Cinema theater operators like INOX and PVR leased areas in the newly-opened malls to set up cineplexes. Both the new malls are adjacent to metro stations, thus making it convenient for shoppers to commute.

Rents remain largely stable across all major submarkets

Rents remained stable across all quality malls.

With new malls becoming operational, there was a slight increase in the overall rents.

Outlook: Retail leasing to go up further, backed by quality supply

The majority of the upcoming quality supply is in the Suburbs submarket, with mixed-use developments as the major contributor. Noida, Ghaziabad and Gurgaon are expected to lead in terms of supply. With infrastructure developments coming into place and improving connectivity, the Suburbs submarket is expected to dominate future supply additions.

Leasing is expected to remain strong with a lot of retailers expanding their footprint, new international brands entering the country and domestic online brands foraying into brick-and-mortar stores. Rents are expected to continue their upward trajectory, with malls witnessing higher footfall, largely due to aspirational lifestyles and healthy consumer spending.

Note: Delhi Retail refers to Delhi NCR's prime retail market.