As the liquidity crunch forced Indian retailers to curtail their expansion plans, real estate developers have also been forced to reduce the supply of retail space that was supposed to come up by 2010 by as much as 87 per cent according to a report by India Shopping Center Forum.
In 2007, around 800 mall projects were announced by different developers. However due to the steep reduction in demand, just over 100 new malls will enter the market by 2010.
The opening of 100 malls will add around 30 million square feet of new shopping center space.
“Developers are now more keen on matching supply to demand, place themselves in strategic locations and offer greater differentiation,” says the report.
