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 in Mumbai. 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, 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 percent 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.
– IndiaRetailing Bureau