Top 8 Indian cities to add 34 new malls by 2020: Cushman & Wakefield
, ETRealty|
Updated: Oct 16, 2017, 04.24 PM IST
BANGALORE | MUMBAI: India will see close to 34 new malls by 2020 in the top 8 Indian cities totaling around 13.6 million sq ft, adding around 20% supply to the available retail space. The retail sector has been encouraged by an upward trend in mall space leasing that was up by 55% in the period January- September 2017, recording 2.3 million sq ft, showed a Cushman & Wakefield report.
New supply for the same period saw a year-on-year drop of 63% at 1.9 milion sq ft.
There is now a regained confidence amongst developers to pay heed to retail sector as investors show greater commitment towards it. An estimated Rs 7,959 crore has been invested by private equity funds in malls between January 2016 and September 2017.
Among the cities, Hyderabad will be witnessing the largest number of new retail malls at 11 new malls, more than doubling its current mall inventory for under 3 million sq ft to over 6 million sq ft by 2020. The additional new malls will be spread across the city in areas of Madhapur, Gachibowli, Panjagutta, Begumpet, and Uppal amongst others. Other cities included Mumbai, Delhi-NCR, Pune, Chennai, Ahmedabad and Kolkata.
After a prolonged period, slow growth, the retail sector has regained momentum and its trust in traditional brick and mortar retail space acknowledging the role that will play in the future growth of the sector. Increasingly it is understood that retail malls will continue to hold importance as a ‘destination’ going beyond stores and selling. Consequently, even e-commerce companies are establishing a physical presence through ‘experience’ stores in many malls and on prominent high streets, the report added.
Delhi – NCR and Bengaluru will each add 8 and 6 new malls, contributing about 4 million sq ft and 3 million sq ft of additional mall spaces respectively by 2020. The only city that is not expected to see any change in their current mall scenario will be Ahmedabad where, as of now, there are no new announced projects for malls. Ahmebabad has remained a largely high street mall due to customer preference to remain at their traditional locations for retail activities.
New supply for the same period saw a year-on-year drop of 63% at 1.9 milion sq ft.
There is now a regained confidence amongst developers to pay heed to retail sector as investors show greater commitment towards it. An estimated Rs 7,959 crore has been invested by private equity funds in malls between January 2016 and September 2017.
Among the cities, Hyderabad will be witnessing the largest number of new retail malls at 11 new malls, more than doubling its current mall inventory for under 3 million sq ft to over 6 million sq ft by 2020. The additional new malls will be spread across the city in areas of Madhapur, Gachibowli, Panjagutta, Begumpet, and Uppal amongst others. Other cities included Mumbai, Delhi-NCR, Pune, Chennai, Ahmedabad and Kolkata.
After a prolonged period, slow growth, the retail sector has regained momentum and its trust in traditional brick and mortar retail space acknowledging the role that will play in the future growth of the sector. Increasingly it is understood that retail malls will continue to hold importance as a ‘destination’ going beyond stores and selling. Consequently, even e-commerce companies are establishing a physical presence through ‘experience’ stores in many malls and on prominent high streets, the report added.
Delhi – NCR and Bengaluru will each add 8 and 6 new malls, contributing about 4 million sq ft and 3 million sq ft of additional mall spaces respectively by 2020. The only city that is not expected to see any change in their current mall scenario will be Ahmedabad where, as of now, there are no new announced projects for malls. Ahmebabad has remained a largely high street mall due to customer preference to remain at their traditional locations for retail activities.
