Shopping mall space supply to more than double in 2014
in Property Time |Property News !
Thu Jan 02, 2014 8:40 am
Supply of retail space in shopping malls is expected to more than double in 2014 to 11.7 million square feet in the top seven cities of the country compared to last year, according to a report by property consultant Jones Lang LaSalle. During 2013, these seven cities — Bangalore, Chennai, Delhi-NCR, Kolkata, Hyderabad, Mumbai and Pune — logged an estimated supply of around 5.2 million sq ft, taking the total shopping mall stock to 76 million sq ft. According to Jones Lang LaSalle India report on 'Retail Real Estate', the total shopping mall stock is likely to reach 87.7 million sq ft by 2014, representing an addition of 11.7 million sq ft of new supply this year. "In 2013, an estimated supply of around 5.2 million sq ft was registered a 22% increase over last year's supply of shopping mall space. Chennai led with 1.95 million sq ft of supply in 2013, followed by Mumbai and Pune. In 2014, Delhi-NCR is expected to hold the dominant position in terms of expected net addition of shopping malls," JLL India managing director (retail services) Pankaj Renjhen said. Among the seven cities, Delhi-NCR and Mumbai have been leading in terms having the highest concentration of shopping malls, accounting for 62% of the total stock. Renjhen said 2014 would witness increased supply of mall space as most of the retail projects were launched in 2009-10 and it takes four to five years to complete them. That apart, Renjhen said that DLF's large shopping mall of about 2 million sq ft in Noida would be operational next year. Highlighting an emerging trend in retail real estate, he said the average size of malls is likely to increase in the coming years, as developers are focusing on project sizes that allow for a critical mass in terms of offering various formats and categories under one roof.