India: 20% vacancy rate in shopping centres

By

Matthieu Guinebault

Published
Aug 5, 2015

It appears that about 20% of the retail surface in Indian shopping centres is looking for tenants. And the shortening of lease periods will not be sufficient to stop the trend. 

The issue is outlined in a study by CII-JLL, which wonders whether a tectonic slide of retail surfaces on the Indian market is imminent. While leases extended over periods of 9 to 20 years in 2008, now their duration is from 2 to 5 years. And while retail trade in general, for city centres and shopping centres combined, records an average return of 15 to 18%, that of the best shopping centres appears to be only from 4 to 8%.

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Valued at $58 billion per year, the Indian domestic textiles and apparel market is expected to reach $141 billion by 2021. The overall retail market is expected to cross the €1 trillion mark in 2020, while clothing exports should reach close to €22.7 billion.