Number of 'ghost malls' increases in major cities

OWING to growing preference towards online shopping and the advent of top 'Grade A' class shopping centres, number of ghost shopping malls, characterised by a vacancy rate exceeding 40%, rose from 57 in 2022 to 64 in 2023 across eight major cities, said real estate consultancy firm Knight Frank on Tuesday.

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The consultant noted that there has been a sharp rise in low-performing retail assets with nearly 13.3 million square feet (mn sq ft) of retail shopping centre space categorised as ghost shopping centres.

There has been an increase of 238% year-on-year (YoY) in ghost shopping centres by gross leasable area (GLA) since 2022 in the prime markets. As a result of the rise in vacant spaces, Knight Frank estimates that loss of value to be at 6700 crore or $798 million in 2023.