DLF Retail is eyeing a 30-50 percent increase in lease rentals across its malls over last year as it sees healthy sales trends among retailers. Speaking to CNBC-TV18, Pushpa Bector, Senior ED & head, DLF Retail said that footfalls in DLF malls are trending way ahead of pre-covid levels and more importantly, sales per footfall has up by 30-35 percent as compared to pre-Covid levels.

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“Sales trends are positive and many of the deed and leases are coming up, it is an opportunity for us to reset rentals. Minimum guarantee & revenue sharing is the approach we take, and retailers are willing to give us a bump up in rentals when they see revenues come up,” Bector said on the sidelines of the MAPIC retail summit in Mumbai.

According to Bector, retailers are enthused by the fact that footfalls have returned along with sales per footfalls, which means that consumers walking in are serious shoppers, and are expanding accordingly.

A study by real estate services firm has also revealed that leasing activity in physical retail has seen a bounce back with leasing activity of 3.16 million square feet recorded in the first six months of 2023. Shopping mall stock as of first half of calendar year 2023 was 89 million square feet with expected supply pipeline of over 38.04 mn sq ft of retail developments between H2 2023 and 2027 taking the tally to 127 mn sq. ft by the end of 2027.

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In addition, a Deloitte report on shopping malls in India says that about about 60 shopping malls encompassing a total retail space of 23.25 million square feet are expected to become operational during 2023– 25 across the top seven cities of India. Out of this, 10 million square feet are expected to get operational in 2023 with 25 new malls entering the market across the top seven cities of India23. This fresh supply will mean an investment of Rs 250 billion.

DLF, on its part, is currently constructing three new malls – one being its flagship mall in Goa and two ‘Plazas’. While leasing for these malls will begin in 2024, they’re slated to open in 2025.

“Plazas are an interesting concept, they will anchor our residential communities. One Plaza will be called Phase 5 called Summit Plaza and one is Midtown Plaza in West Delhi. Both these look to fulfill the community’s immediate needs with smalls stores with a lot of range and F&B will be our mantra,” she added.

DLF is also expanding its existing malls in Vasant Kunj, the Emporio, which it plans to double in size by adding more luxury brands, and Promenade as well.

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Bector expects the total retail footprint to reach six million square feet by 2025 from the current 4.5 million square feet it has across eight malls.

Bector also hinted that one of the next few standalone Apple stores could be opened in one of its malls in Delhi. “Not privy to answering openly, but we have been in talks with Apple for the last 3 years for the right opportunities. You'll hear it from Apple soon on where they'll be opening in a DLF mall,” she added.

A Bloomberg report in June 2023 stated that Apple’s fourth standalone store could be opened at the DLF Promenade mall in 2026, which would be India’s second-largest Apple store after the one in Mumbai’s BKC.

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