This Fiscal Year Mall Rental Income in India is Anticipated to Rise 30 Percent as Per Credit Rating Agency Icra

New Delhi:

The rental revenue of malls in India is anticipated to climb by 30 percent annually in the current fiscal year, since it has exceeded the pre-covid-19 benchmark levels in the second half of 2021-22 and 80 percent of pre-pandemic levels for the whole preceding fiscal year, according to the credit rating agency Icra.

Since the second wave of the pandemic, rental revenue recovery has accelerated, with a 74 percent increase for the quarter ending in June, as compared to a 62 percent increase in the preceding quarter.

34 percent a year ago and 102 percent of pre-Covid-19 levels at the end of the fiscal year.

"In 2021-22, rental income in Icra's sample set increased by around 56%, reaching almost 80% of pre-Covid levels," stated Icra's sector leader for corporate ratings, Anupama Reddy. "On a same-store basis, rental revenue is projected to climb by around 30 percent in 2022-23 and is likely to exceed 2019-20 levels by 4-6 percent. With the return to normality of trade prices, occupancy is anticipated to increase in 2022-23." As a result of pent-up demand, high vaccination coverage, and the reopening of multiplexes, the operational metrics of shopping malls have significantly improved since August 2021, after the second wave of Covid-19.

"The malls are seeing record foot traffic, and merchants are also growing. Rents have also increased, resulting in a high collection rate "said Manoj Gaur,

The Gaur City Mall is operated by the Gaurs Group, whose chairman is the Gaur City Mall's chairman. According to a study by Icra, the trajectory is mostly

Sustained throughout the second half of 2021-22, except a small interruption caused by the third wave of the pandemic, which is driven by the Omicron variety. Retail trading values exceeded the pre-pandemic trade levels in the fourth quarter of 2021-22.

Icra predicts that mall traffic would return to pre-Covid-19 levels in the third quarter of this fiscal year.

"Regarding vacancy rates, the installation of new retail space in six cities was about 11 million square feet in 2020-21 and 2021-22. However,

During this era, the additional space absorption was only around four million square feet, resulting in a large rise in vacancy rates - 18 percent in 2021-22 to 23 percent in 2021-22 "nt in 2019-20," stated Reddy.