SHOPPING MALLS SEE 69 PERCENT RISE IN RETAIL SPACE LEASING IN 7 TOP CITIES: JLL
Net leasing of retail space in shopping malls has increased by 69 percent during January-March in seven major cities to 3.52 lakh sq ft as domestic and global brands looking to expand their presence, reported JLL India. Supply of space in malls, however, fell by 87 percent during the rst 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 sq. ft., recording a rise of 69 percent over the same time last year,” JLL said in a published 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 percent 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. Nair said the customers today view retail malls not only as shopping centres but also as entertainment hubs and lifestyle destinations.
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, TudbaDeri 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 percent), Hyderabad (11 percent) and Chennai (7 percent) that saw a marginal decline over past quarter.