‘Malls see 69% rise in re­tail space leas­ing in 7 top cities’

Shoes & Accessories - - The Month That Was | Updates I India -

Net leas­ing of re­tail space in shop­ping malls in­creased by 69 per­cent dur­ing Jan­uary-march in seven ma­jor cities to 3.52 lakh sq ft as do­mes­tic and global brands look to ex­pand their pres­ence, ac­cord­ing to prop­erty con­sul­tant JLL In­dia.

Sup­ply of space in malls, how­ever, fell by 87 per­cent dur­ing the first quar­ter of 2018 cal­en­dar year in the seven cities — Mum­bai, Delhi, Bangalore, Chen­nai, Hy­der­abad, Kolkata and Pune — to 1.6 lakh sq ft over a year-ago pe­riod.

“Re­tail mall ab­sorp­tion recorded a pos­i­tive trend in Q1 2018 (Jan­uary-march). To­tal ab­sorp­tion across top 7 cities of In­dia was recorded at 3,52,000 square feet (sq ft), record­ing a rise of 69 per cent over the same time last year,” JLL said in a re­port.

The sup­ply side of the mar­ket recorded an ad­di­tion of only 1,60,000 sq ft of fresh mall sup­ply by adding just 2 new shop­ping malls in Delhi–ncr, it added.

Ac­cord­ing to the data, the Delhi-ncr mar­ket ac­counted for 84 per cent of to­tal leas­ing of re­tail space in malls at 2.92 lakh sq ft. The other mar­kets that saw some de­cent ab­sorp­tions were Hy­der­abad (31,000 sq ft) and Chen­nai (17,000 sq ft).

“The in­creased pace of leas­ing ac­tiv­i­ties is heart­en­ing as it sig­nals to­wards a growth phase for re­tail in In­dia. Brands, both na­tional and global, are look­ing at in­creas­ing their pres­ence in key mar­kets, to cap­i­talise on the sta­bil­ity and growth in the econ­omy,” said Ramesh Nair, CEO and Coun­try Head, JLL In­dia.

“Brands are also dis­cern­ing about the lo­ca­tion of their stores and are there­fore choos­ing to align with re­tail malls that have higher foot­falls and bet­ter con­ver­sion rates per foot­fall,” he added.

Stat­ing that global brands have been en­ter­ing the coun­try and are ex­pand­ing rapidly in the past cou­ple of years, Nair said some in­ter­na­tional brands like Ki­abi, Mavi, Avva, Colin’s, Da­mat, Tudba Deri and Dufy are likely to en­ter the coun­try in the next few months.

The va­cancy lev­els across mall spa­ces re­mained stable across most mar­kets with the ex­cep­tion of Delhi–ncr (18 per cent), Hy­der­abad (11 per cent) and Chen­nai (7 per cent) that saw mar­ginal de­cline over past quar­ter.

Delhi–ncr emerged as the most ac­tive re­tail mar­ket for Q1 2018 with the com­ple­tion of two new malls, while no other city saw any new com­ple­tion. The NCR mar­ket wit­nessed a with­drawal of close to 1 mil­lion sq ft of mall space, bring­ing down the to­tal re­tail space stock by one per cent to 74.5 mil­lion sq ft from the pre­vi­ous 75.6 mil­lion sq ft.

“The malls that close are typ­i­cally those which were con­structed many years back and did not go through pe­ri­odic mod­i­fi­ca­tions to suit chang­ing re­quire­ments of re­tail­ers and shop­pers,” the re­port said.

Mum­bai, too, saw the clo­sure of mall spa­ces mea­sur­ing 8,50,000 sq ft in the city, con­tract­ing the avail­able re­tail space and bring­ing down the va­cancy to a man­age­able 10 per cent in Q1 2018 as against 13 per cent in Q1 2017.

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