Many people have come across aging malls in their cities. From the outside, these structures look worn out, as if they haven’t seen a coat of paint in years. Signboards hang broken, entrance lights glow faintly, and while the air conditioning still runs, the corridors inside feel eerily empty. Only a handful of outlets remain open—perhaps a salon, a restaurant, or a small co-working space. Even these rarely attract crowds. These places barely resemble shopping centers anymore, leaving one question hanging in the air: how are they still standing?
In real estate terms, such properties are known as ghost malls.
This isn’t an issue unique to India. Countries like China and the United States have faced similar challenges in the past. For years, real estate consultancy Knight Frank has been studying this phenomenon. In the latest edition of its Think India Think Retail report, the firm notes that ghost malls are more than just an eyesore. They represent vast amounts of land and capital that remain largely unused.
Rather than dismissing them as failed projects, the report focuses on understanding their scale, their locations, and the real potential for revival. It also takes a closer look at how Indians shop—where retail activity concentrates, and why malls thrive in some cities while struggling in others.
Understanding How India Shops
Knight Frank mapped India’s organised retail ecosystem by studying 32 cities and counting all formal retail formats within them. The findings show 365 functioning malls that together house 22,400 retail stores. Alongside these, the study includes 58 major high streets.
High streets refer to legacy commercial zones such as MG Road in Bengaluru, Park Street in Kolkata, or Connaught Place in Delhi. These areas may not be enclosed malls, but they function as powerful retail magnets where large sections of a city converge. Collectively, these high streets accommodate around 7,900 stores.
The study also factors in retail spaces within 17 airports and approximately 340 stores located inside five-star and heritage hotels across the selected cities. Together, these formats form the backbone of India’s organised retail landscape.
Knight Frank then applies a quality filter to this data. Malls are assessed based on construction standards, tenant quality, operational efficiency, and ownership structure. Older malls or those suffering from significant vacancy are classified as ghost malls.
Once identified, these properties are evaluated again to determine whether revival is feasible. Location strength, nearby income levels, and the practicality of renovation play a key role in deciding their future.
Key Insights from the Report
At a high level, the report confirms a familiar truth: while malls are important, Indian retail does not revolve around malls alone.
In major metropolitan cities, Knight Frank measured around 105 million square feet of organized retail space. Nearly 98 million square feet of this area exists within malls, with the rest distributed across high streets, airports, and luxury hotels.
Malls dominate in terms of built retail area, but actual shopping behavior is more diverse. Consumers turn to malls for a controlled experience—air conditioning, parking, cinemas, and popular brands in one place. High streets, however, continue to support daily life, handling routine purchases and casual visits after work or college.
Why Mall Culture Varies Across Cities
Some cities have integrated malls deeply into everyday consumption, while others have barely embraced them. Cities such as Mangaluru and Lucknow rank high in mall space per person. In these locations, malls serve not just as leisure destinations but as regular shopping hubs. Clean infrastructure, safety, and convenience make them appealing public spaces.
In contrast, cities like Surat and Ludhiana tell a different story. Despite strong economies and high spending power, malls here perform poorly on a per-capita basis. The reason lies in tradition. These cities already have well-established commercial zones—textile markets in Surat or manufacturing-driven clusters in Ludhiana—where retail demand naturally flows.
Metro cities sit somewhere in between. Delhi NCR, Mumbai, Bengaluru, and Chennai host large numbers of malls, but when adjusted for population, they are not excessively mall-heavy. What stands out instead is polarization. A few premium malls remain consistently crowded, while many older or poorly designed ones sit nearly empty.
What Creates a Ghost Mall?
Knight Frank defines a ghost mall as any shopping center that is at least three years old and has 40% or more vacant space. By this standard, India currently has about 15.5 million square feet of ghost mall inventory.
Interestingly, most of this space is concentrated in metro regions rather than smaller towns. Satellite cities such as Noida and Ghaziabad, along with the wider Delhi NCR region, account for a significant share.
Many of these malls were once successful. Over time, anchor tenants—cinemas, supermarkets, or large retail chains—shut down or relocated. Once these anchors exited, foot traffic declined sharply, and smaller retailers followed. Eventually, the mall was reduced to a hollow structure that retained the name but lost its purpose.
Poor location choices, weak design, and inefficient layouts contributed heavily. Some malls were built far from residential clusters, while others featured confusing internal pathways that discouraged movement and exploration.
Ownership structure also mattered. In many older malls, individual shops were sold to multiple small owners. This fragmented control made it impossible to curate brands or maintain a cohesive retail strategy. Instead of feeling like a unified destination, these malls felt disorganized and outdated.
Competition from newer malls further accelerated decline. When modern centers opened nearby with better layouts, stronger anchors, and superior dining options, older malls struggled to retain relevance.
Retail, at its core, is emotional. Once consumers stop associating a place with comfort, excitement, or habit, winning them back becomes extremely difficult. Oversupply also plays a role—building more malls than actual demand can support. China’s experience with overdevelopment serves as a cautionary example, and while India’s situation is different, the risk cannot be ignored.
Is the Trend Reversing?
Knight Frank’s data suggests that ghost malls are not disappearing quickly. In tier-one cities, the number of ghost malls rose from 57 in 2022 to 64 in 2023, before easing slightly to 60 in 2024. The recent improvement came from active efforts to revive or repurpose select properties.
For instance, Central Mall in Bengaluru was repositioned with strong value-focused brands like Westside and Zudio. In Mumbai, several underperforming malls were converted into office spaces or educational centers.
Still, the broader reality remains unchanged. A mall can function smoothly with minimal vacancy, but once empty space approaches 40%, it begins to feel lifeless. Footfall drops, tenants hesitate, and perception turns negative. Dim corridors and aging interiors create a sense of discomfort—even if the space isn’t truly unsafe.
Can Ghost Malls Be Revived?
According to Knight Frank, revival is possible—but only for a portion of the problem. Of the 15.5 million square feet classified as ghost malls, around 4.8 million square feet across 15 malls in 11 cities have realistic revival potential.
These malls are not fundamentally flawed. They are located in strong catchment areas but suffered from mismanagement, outdated positioning, or poor tenant strategy. With proper refurbishment and repositioning, they could generate nearly ₹357 crore in annual rental income.
Most of this opportunity lies in South and West India, which together account for 66% of the revival potential, largely concentrated in major metropolitan regions.
The question now is whether India’s retail ecosystem can adapt fast enough—by rethinking space, design, and purpose—to bring these ghost malls back to life.
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