Shopping centre owners’ revenue declined by around 50 per cent during the last fiscal as the retail sector was badly hit since the outbreak of the Covid-19 pandemic in March last year, according to a PTI report. Average monthly rentals in shopping centres have softened by 4-5 per cent across eight cities, although many malls saw rent correction of up to 25 per cent, the report said.
Most developers across India offered complete rental waiver during the April-June period of 2020 because of the nationwide lockdown to contain the spread of Covid-19. Major discounts were offered during the remaining nine months of the last fiscal as well, resulting in a huge dent in their overall income.
“Fall in revenue for entire last financial year has been about 50 per cent and with the second wave, it will again be the same,” Pacific Group Executive Director Abhishek Bansal told PTI.
Harsh Bansal, the Director of Unity group confirmed that there had been a huge adverse impact during the last fiscal and the total rental income was only about 40-50 per cent of a normal year.
Due to the pandemic, average monthly rents in many malls fell by up to 25 per cent, Bansal said.
Shubhranshu Pani, MD (retail services), JLL India, told PTI that for mall owners, the fallout of the pandemic during the March 2020 to March 2021 period was around 50 per cent, mainly due to loss of rent, and operational costs. “A multiplex contributes 15 per cent to the overall rental income of mall owners and this has been almost wiped out,” he added.
Pankaj Renjhen, COO & Joint MD, Anarock Retail, said developers would have definitely seen a fall in their overall revenue last fiscal year but it’s difficult to quantify.
“Now, with the second wave coming in and malls being shut across most cities, there is no doubt that it will once again wreak havoc and severely impact the sector,” he added.
PTI quoted Cushman & Wakefield as saying that mall rents on an average across the top eight cities have declined by about 4-5 per cent after the pandemic.
Average rentals in superior malls have witnessed marginal rental corrections, but the good and average malls witnessed rental corrections up to 7-10 per cent.
“Revenues of shopping centre owners fell by about 40-50 per cent during the last financial year. Rental negotiations/discounts/waivers amidst the second wave are likely to impact their revenues again this year,” Cushman & Wakefield said.