Indian Cities to Add 100 New Malls by 2022-End

 New malls will cover over ~ 49 mn sq. ft. area

 Of total supply, top 7 cities to see 69 new malls spread over 35.5 mn sq. ft. area; Tier
2 & 3 cities to get 31 malls over 13.5 mn sq. ft.
 West India to see maximum supply of 36 malls over 17.5 mn sq. ft. area, southern
region follows with 35 new malls over nearly 17 mn sq. ft.
 18 new malls to hit MMR in 3 years; NCR and Hyderabad to see 13 & 12 new malls
respectively
 Among Tier 2 cities, Ahmedabad & Lucknow stand out with 6 & 4 new malls to be
added

Despite low consumer spending in recent times, mall developers remain bullish on the
growth potential of organized retail. 100 new malls spanning over 49 mn sq. ft. are
scheduled to come up across the country by 2022-end, reveals the latest ANAROCK
research.

Of the total new mall supply, the top 7 cities alone will see 69 new malls spread over 35.5
mn sq. ft. area. The remaining 31 malls over 13.5 mn sq. ft. will come up in Tier 2 & 3 cities
such as Ahmedabad, Lucknow, Indore, Surat and Nagpur, among others.

Region-wise, west and south Indian cities will see almost equal new supply. West India will
get 36 new malls over 17.5 mn sq. ft. area, followed closely by South India with 35 new malls
over nearly 17 mn sq. ft. The North region will see a supply of 22 new malls spanning over
11 mn sq. ft. area. East India will see a much more modest supply of 7 new malls spread
over approx. 3.5 mn sq. ft.

“2019 was defined by significantly lower retail leasing, so this generous new
upcoming mall supply over the next three years testifies to the confidence of
private equity investors in Indian retail's pent-up potential," says Anuj
Kejriwal, MD & CEO - ANAROCK Retail. "The retail sector drew over USD
2.8 bn PE inflows from 2015-2019-end, 59% by foreign investors alone.
Despite overall weak consumer spends, F&B, family entertainment centres,
cinemas and beauty/wellness service outlets continue to flourish and demand new retail
spaces. Consumer spending will rebound as the government’s concerted intervention to
push consumption bear fruit over the upcoming quarters.”

“Besides the tier 1 markets, we are seeing major growth unfolding in Tier 2 & 3 cities.
Markets such as Ahmedabad, Lucknow, Nagpur and Indore are seeing high demand from
retailers.”

Tier 1 City Mall Supply:

 MMR tops out with 18 new malls spanning 7.8 mn sq. ft.
 NCR comes next with 13 new malls spread over 7.5 mn sq. ft.
 Hyderabad will see the launch of 12 new malls over more than 4 mn sq. ft.
 Bangalore and Chennai will see an infusion of 10 and 9 malls respectively, together
accounting for 10.8 mn sq. ft.
 Pune and Kolkata will see 4 and 3 new malls added respectively.

Among the tier 2 & 3 cities, Ahmedabad stands out with as many as 6 new malls slated to
come up in the city by 2022-end. These new malls will be spread over 3.2 mn sq. ft. Both
domestic and international brands are gung-ho on Ahmedabad; besides scoring high on
consumerism, they city has a growing young population of entrepreneurs, IT professionals
and factory employees

Lucknow presents a similar picture and has plans for 4 new malls to be added by 2022-end.
The western cities of Surat and Nagpur will see new supply of 2 malls each spread over 0.7
mn sq. ft. and 0.85 mn sq. ft. area.