Rents surge in superior-grade malls: Report

Bengaluru: Malls with superior grade of grade A+ supply are outperforming their peers, with stock-weighted average rents rising by 29 per cent since 2019. Their rents are currently averaging Rs 315 per square foot per month, according to a report by Cushman and Wakefield out on Tuesday.

In fact, over 70 per cent of the 12.3 million square feet (msf) of new Grade A mall supply expected over the next two years will be superior grade or grade A+. This signals a new wave of premiumisation of India's retail real estate. 

India’s total Grade A mall stock stood at 61.5 msf in 2024, with superior grade malls already comprising 63 per cent of the total.

Owing to limited space availability in superior grade malls, many brands are also choosing to locate their stores in prominent high streets across the top eight cities over the last few years. This includes Linking Road in Mumbai, Connaught Place in Delhi, MG Road in Bengaluru.

These high streets have seen their rentals surpass pre-Covid peak of 2019 and continue to move upwards.