Large retail format driving realty markets

75 malls to come up in the national capital region by 2007

A total of 75 malls would come up in the National Capital Region (NCR) by 2007, with large retail format fast catching up the imaginations of real estate developers, a realty consulting firm said.

The malls with stocks of 23.2 million sq ft is slated to hit the Delhi and NCR market by 2007, and the developers are vying with each other to differentiate their malls on the basis of product mix, said Knight Frank in its latest market updates.

Amusement parks, convention centres, service apartments and hotels are some of the concepts, which are being combined with retail benefits to present a complete product mix.

Interestingly, high street retail places like the South Extension, Connaught Place, Greater Kailash, Vasant Kunj would continue to command high prices, owing to the lack of fresh supply. However, some micro-markets like Defence Colony will have addition to the existing stock.

A new trend has emerged in recent times relating to the development of large format malls (over 300,000 lakh sq ft) and has catch up with the new mall developers and promoters.

The Kaushambi mall (500,000 sq ft) in East Delhi, proposed Unitech mall (1.3 mn sq ft) in Noida, DLF's project (950,000 sq ft) in the Vasant Kunj and area ambience group project (600,000 sq ft) in Gurgaon are some of the larger format being planned.

Noida is expected to witness a dynamic retail market with demand being fuelled both in Delhi as well as Noida residents. "Malls are expected to do well in Noida on account of its proximity and better connectivity to Delhi," the consulting firm said.

Faridabad, Greater Noida and Ghaziabad are together going to have 25 malls by the end of 2007, thus lowering the gap between demand and supply. The rentals are expected to be stable till all the new malls become operational. Organised retailing is on a fast track growth and is projected to grow at the rate of 25-30 per cent.

Major India Corporate Retailers have already chalked out their elaborate expansion plan, said Kinght Frank, adding, "Retail revolution is expected to percolate to small cities and towns".

India also figures on the radar of international retailers and with the "FDI in retail trading being imminent," the domestic realty market has overwhelming accepted the contemporary retail formats, it said.

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• Amusement parks, convention centres, service apartments and hotels are some of the concepts, which are being combined with retail benefits
• Noida is expected to witness a dynamic retail market with demand being fuelled both in Delhi as well as Noida residents
• Faridabad, Greater Noida and Ghaziabad are together going to have 25 malls by the end of 2007, thus lowering the gap between demand and supply
• Organised retailing is on a fast track growth and is projected to grow at the rate of 25-30 per cent