PUNE’S RE­TAIL REAL ES­TATE BOUNCES BACK TO BUSI­NESS

Shopping Center News - - NEWSMAKER NATIONAL -

Af­ter clo­sure of some malls, Pune’s re­tail mar­ket is re­ceiv­ing re­newed in­ter­est and fresh in­vest­ment is com­ing in to the mall space. “Pune’s re­tail real es­tate sec­tor is see­ing sig­nif­i­cant churn and more global brands are lin­ing up to ex­pand their foot­print,” said Mayank Sha­ran, lo­cal di­rec­tor, Re­tail, JLL In­dia.

The Pavil­ion on S B Road and Westend Mall in Aundh, which ac­count for of 4.5 lakh sq. ft. and 4 lakh sq. ft. space re­spec­tively, plan to up their game with ma­jor in­ter­na­tional brands like H&M, Zara, Gant, Ken­neth Cole, Brooks Brother, MAC Cos­met­ics and Su­perdry.

Many global re­tail­ers are ex­pand­ing their re­tail foot­print in Pune and among them are H&M, Marks & Spencers, De­cathlon and MAX, says the JLL re­port. In­ter­na­tional re­tail gi­ants like Wal­mart and IKEA are also con­sid­er­ing Pune to set new stores. IKEA plans to ac­quire land parcels to ex­e­cute en­try into Pune in 2018-19, and Wal­mart is con­sid­er­ing a suit­able lo­ca­tion to ac­ti­vate its stores. Both th­ese re­tail gi­ants will fo­cus pri­mar­ily on the brick-and-mor­tar model, but use e-com­merce to sup­ple­ment sales in the city, Sha­ran said.

There has been some im­por­tant sup­ply aug­men­ta­tion on Pune’s re­tail real es­tate mar­ket re­cently, par­tic­u­larly Westend Mall in Aundh and The Pavil­ion Mall on S B Road, which is slated to be­come op­er­a­tional in 2017, says a JLL re­port.

Among the malls which have man­aged to crack the code and stay highly rel­e­vant are Phoenix Mar­ket City on Na­gar Road, Amanora Mall in Hadap­sar, Sea­sons Mall next to Ma­garpatta City and Ku­mar Pa­cific Mall on Swar­gate, says JLL In­dia.

Global High Street Mall, a newly launched cen­tre in Hin­je­w­adi Phase 2, has at­tracted con­sid­er­able in­ter­est amongst re­tail­ers, due to the ready avail­able catch­ment, lack of a des­ti­na­tion sup­ply with the right in­gre­di­ents. The cen­tre, which houses the largest PVR in Pune, is due to open in Q4-2019.

Nitesh Hub (formerly known as Kore­gaon Park Plaza) which now is op­er­a­tional on four floors and is wit­ness­ing con­sid­er­able foot­falls has plans of adding more brands and food of­fer­ings.

Ac­cord­ing to JLL In­dia, the rental land­scape has changed quite a lot in 2017, with qual­ity malls see­ing con­sid­er­able with rental in­cre­ments while others dis­played slower or no growth. Pune’s Grade A malls where sup­ply is short and de­mand is high, ren­tals have moved up­ward by as much as 10-15 per­cent re­cently.

Cap­i­tal val­ues in high­de­mand malls have also seen sig­nif­i­cant in­crease in 2Q17 over 1Q17, go­ing as high as 10 per­cent in some cases. This has led to a re­newed in­ter­est by mall de­vel­op­ers to in­vest in rel­e­vant Grade A re­tail sup­ply.

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