India|June'2009:
Over 100 malls containing over 30 million square feet of new shopping
centre space are projected to open in India between 2009 and end-2010,
says a new report, the key findings of which were released today at the
India Shopping Centre Forum 2009 (ISCF) at The Renaissance. IMAGES Group
in association with the Shopping Centres Association of India, Jones Lang
LaSalle Meghraj and Cushman & Wakefield India today released the key
highlights of the forthcoming report Mall Realities India 2010, which
makes a strong case for the continuing robustness in the shopping centre
business, and projects that additional mall space to be available across
the country in 2010 could exceed 30 million square feet.
Though this figure is much lower than what was projected a couple of years
ago, analysts are seeing this as a sign of change for the good –
developers are now more keen on matching supply to demand, place
themselves in strategic locations and offer greater differentiation.
“The purpose and aim of this report is to dissipate some of the
ambiguities surrounding the shopping centre business in India currently.
Retailers, marketers and retail support companies have expressed the
urgent need for clear and unambiguous data on projected mall supply in the
light of ongoing delays and project restructurings. Revealing that about
100 malls are scheduled to open and 30 million plus square feet will be
available for consumers to shop and entertain themselves in, between 2009
and December 2010, this report goes a long way in addressing the need for
critical information,” said Amitabh Taneja, Chief Convenor, India Shopping
Centre Forum, as the key findings were released to the industry at ISCF
2009.
“The Shopping Centres Association of India was created with the objective
of promoting the growth of India’s shopping centre industry, but for the
right reasons. Dissemination of appropriate and correct information to
retailers is a very critical part of that aim. This report attempts to
clear some of the over-supply fears relating to mall development, in the
process, helping the industry to develop greater clarity,” said Neel
Raheja, Director, K Raheja Corp, and Chairman, Shopping Centres
Association of India.
The report reveals that as far as retail real estate in the top eight
cities was concerned, as much as 11 million sq. ft of expected mall supply
in 2008 was deferred to 2009-10, which was a reduction of 54% from the
projections made at the beginning of 2008. Of the proposed 74 malls at the
beginning of Q1 2008, only 34 were delivered by the year-end. At 9.7
million sq. ft., Delhi NCR witnessed the largest share of this supply.
As per research data from Cushman & Wakefield and Jones Lang LaSalle
Meghraj, between now and 2010, an additional 31,846,504 square feet of
mall space will be created across India through just over 100 new shopping
centres. Of this, the North zone is leading at a total of 14,790,000 sq.ft,
of which Delhi NCR itself contributes a massive 7,645,000 sq.ft of mall
space. That translates into 45 malls expected in the North zone with 24 in
Delhi NCR itself.
West zone is the second most prolific region in terms of additional
projected mall supply of 7,438,504 sq.ft. (through 47 malls).
South and East zones total up projected mall space at 5,865,000 sq.ft (in
29 malls) and 3,753,000 sq.ft (in 13 malls), respectively. Interestingly,
while most projects in North Zone, West Zone and South Zone are in or
around tier II cities, in the East, the majority of developments are to
open in or around West Bengal capital Kolkata.
The list of properties scheduled to open in this period are located across
metros, mini metros and tier II towns, including in Delhi, NCR, Mumbai,
Pune, Aurangabad, Raipur, Bangalore, Siliguri, Jabalpur, Surat, Nashik,
Ahmedabad, Bhopal, Rajkot, Aurangabad, Jaipur, Jalandhar, Chandigarh
(including Zirakhpur, Panchkula, Mohali), Kanpur, Ludhiana, Amritsar,
Hyderabad, Secunderabad, Kolkata, Haldia, Chennai, Bhubaneswar, Coimbatore,
Noida, Gurgaon, Vijaywada, Vishakhapatnam, Mysore, Hubli, Kochi and
Asansol, along with several properties on major national highways.
Detailed analysis and profiles of upcoming shopping centre projects will
be contained within the Mall Realities India 2010 report, which will be
launched later this year.
Reachout's News Bureau
June' 2009
