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West India ‘retail real estate’

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The region including six states and 2 Union Territories is the home to 70 operational shopping malls with total mall area (BUA) of 47 million sq ft. By the end of 2016 there should be another 17 malls operational which will add another 9 million sq ft of mall area. This will translate into total mall area of 56 million sq ft. effective retail space (GLA) in these malls.

Shop till you drop

Demand & supply
Total urban population in the region is 97,848,726 persons as per census 2011. For the cities with developed retail markets the required Per Capita Retail Space (PCRS) is 8 sq ft and for developing retail markets it is 7 sq ft. The average SEC AB population in
the developed markets of the region is 24 per cent and in developing markets it is 17 per cent. If we assume SEC AB population share at bare minimum of 10 per cent of total urban population then there should be 10,645,350 persons belonging to SEC
AB in the region by 2016. If we apply even the lower PCRS of developing markets, the required retail space for this population should be at least 75 million sq ft by 2016. Currently the region has close to 30 million sq ft of retail space which means there is
still a shortfall of 45 million sq ft out of which upcoming projects will be able to provide just 5 lakh sq ft by 2016. Almost 100 per cent of current retail space will still be required to be created to match up growing SEC AB population of the region.

Growth of mall culture

The region has seen growth in mall retail space over the years. From a lakh sq ft in 1999 today the region has close to 30 million sq ft of operational retail space. The aggregate retail space in malls has grown at an average of 1.6 million sq ft per annum during the period (1999-2015). With current average GLA of 4.28 lakh sq ft per mall, the region witnessed launch of average 4 (3.7 to be precise) malls every year since 1999. The average retail space in malls has seen steady growth except during the period of 2004-08 where it dipped by 9 per cent from 3.6 lakh sq ft per mall to 3.29 lakh sq ft per mall. However, post 2008 it has seen consistent rise only. Since the period from 1999 till today the average retail space per mall has grown by 25 per cent. This
gives us the growth rate of growing retail space at 1.6 per cent per annum slightly below the growth rate of 1.7 per cent per annum by which the total population in the region has grown during the period 2001-11. This further verifies that supply of retail space in malls is not pro-active as yet.

Present Mall scenario

Seventy operational malls are spread across 19 cities in the region. Metrocities including Mumbai, Pune and Ahmedabad holds 60 per cent of all malls in the region. This is
attributed to large geographical areas available to them. In addition there is huge population base and certain consumption levels which support growing mall culture. This has further resulted in malls with larger retail space inhabiting these cities. The
average retail space per mall in metrocities of the region is 4.71 lakh sq ft as against 3.69 and 3.24 lakh sq ft in Tier I & II cities respectively. These malls in the region together operate 8,500 retail outlets from their premises excluding temporary kiosks
and promotional retail points. At an average there are 121 outlets per mall with average store size being around 3,500 sq ft.

Best malls in the region
Top Retailers and retail chains in the country voted for 67 top malls in India based on their experience in terms of best ROI, service factor, attracting footfalls, capturing catchment and quality brand-mix. Out of these 67 malls 19 are based in the western
region of India. These nineteen malls include malls with minimum retail space of 2.3 lakh sq ft to 1.2 million sq ft. Few of these top malls out of that list are introduced below under three groups:

LARGE-SIZED MALLS (minimum retail space of one million sq ft)
Phoenix Market City, Pune is one of the three key malls in the region with million plus sq ft of retail space. The mall was launched in the year 2011 by the developer The Phoenix Mills. The total area of the mall is 1.8 million sq ft with 5 floors. It houses around 250 retail outlets and more than 30 kiosks to serve at an average 50,000 visitors daily. With
vehicle parking capacity in the range of 1,500-2,500 vehicles, the mall has shaped
city’s mall culture significantly.

mall, Aurangabad is another million plus sq ft mall in the region but its exclusivity lies in its presence in a non-metro city like Aurangabad. With 160 retail outlets and a capacity to hold around 30 kiosks, the mall caters to 25,000 – 45,000 visitors during a week. Fifteen per cent of its retail space is devoted to department
store, 18 per cent to other fashion & lifestyle brands, another 15 per cent to multi-plex and hypermarket. In terms of brands, the mall has accommodated foreign brands across categories on 34 per cent of its retail space. The mall was developed by Prozone
(through their SPV–Empire Mall Pvt. Ltd) and got operational in 2010.

High Street Phoenix, Mumbai is another million plus sq ft shopping mall from the house of The Phoenix Mills which was launched in 2001. The mall with 230 retail outlets has large parking space for thousand plus vehicles. The mall service average footfall of 60,000 visitors on a regular weekday which further shoots upto 100,000 during weekends. The retail mix in the mall is more inclined towards foreign brands which consume more than half of its retail area. Fashion & Lifestyle products and services along with Multiplex occupy 50 per cent of mall’s retail space.

MEDIUM-SIZED MALLS (retail space 0.5 to 1 million sq ft)
, Pune has around 700,000 sq ft of retail space and was developed by City (Kshitij) Group. The mall with over 200 outlets can accommodate close to1,500 vehicles
in its parking area. The mall gets at average 35,000 – 70,000 visitors during the week.

DB City, Bhopal is the pride of the capital city for the state of Madhya Pradesh. Tier I city with population between one million to four million got this mall launched in the year 2010. The mall developed by DB Malls Pvt Ltd has retail space of 800,000 sq ft which receives upto 80,000 visitors during weekend days.

Infiniti mall, Mumbai was launched in 2011by famous with retail space of over 800,000 sq ft. The mall with 7 floors has 140 outlets and is fully operational. The parking including basement, open and terrace area accommodates over
1,000 vehicles to service average daily footfall in the range of 22,000 –50,000 during the week.

Korum mall, Thane was launched in 2009 by . The mall has retail space of about 700,000 sq ft and is among the famous malls in Tier I cities of the country. Close to 125 outlets and a parking capacity for 1,200 vehicles, the mall is estimated
to receive average weekend footfall of 37,000 people. Fifty per cent of retail space holds fashion & lifestyle, 20 per cent Food & Grocery, 10 per cent Foodservice and rest other multiple services. With almost 90 per cent of brands being local/national it exhibits
Indianised offering.

SMALL-SIZED MALLS (retail space 0.1 to 0.5 million sq ft)
Aashima mall, Bhopal with retail space of 300,000 sq ft was developed by Sri Govind Reality Pvt Ltd. It has 100 retail outlets operational on its five floors. Average daily footfalls are 8,000-10,000 who visit mall with parking capacity for 2,000 two wheelers.

Inorbit malls in Vashi and Malad
Mumbai are the properties developed by Inorbit Malls (I) Pvt Ltd. Both malls together
have combined retail area of over 700,000 sq ft and plays host to 20,000-40,000 visitors on daily basis. Two hundred and fifty plus outlets are operational in these two
malls which are among the few of early starters in the city. Vashi mall opened for public in 2004 and Malad one came up four years later.

Iscon Mega mall, Ahmedabad got operational in the year 2007. It was developed by JP Infrastructure. The retail space in the mall is over 3 lakh sq ft and accommodates 120 retail outlets.

Treasure Island, Indore is the mall with retail space of over 400,000 sq ft. It was developed by EWDPL and was launched in 2005 thus making it a decade old mall in the city. The mall with 141 retail outlets has a multi-level parking area
of 1.44 lakh sq ft. It’s footfalls during weekend days can reach up to 60,000.