The number of ghost shopping malls those with vacancy rates exceeding 40 per cent – surged to 64 in 2023 from 57 in 2022 across eight major cities in India, according to a report released by real estate consultant Knight Frank.
Titled 'Think India Think Retail 2024', the report revealed insights into the shopping centers and high streets across 29 cities in the country.
It highlighted a significant uptick in underperforming retail assets, particularly in Tier I cities.
The report identified 64 shopping malls encompassing approximately 13.3 million square feet of gross leasable area as 'Ghost Shopping Centers' in 2023, marking a 58 per cent increase from the previous year's 8.4 million square feet.
This rise in ghost shopping centers translated to an estimated loss of value amounting to Rs 6,700 crore or USD 798 million in 2023.
The National Capital Region (NCR) accounted for the highest stock of ghost shopping centers, measuring at 5.3 million square feet, followed by Mumbai with 2.1 million square feet and Bengaluru with 2 million square feet.
Hyderabad was the sole city to record a decline in ghost shopping center stock by 19 per cent year-on-year to 0.9 million square feet in 2023.
Among the major cities, Kolkata witnessed the sharpest rise in ghost shopping centers at 237 per cent year-on-year, albeit from a lower base.
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