Business Standard

Average mall vacancy increase in south cities

Image

Press Trust of India Bangalore

Average mall vacancy levels in major cities in the country have been on a gradual rise moving from 16 per cent in January to about 19 per cent at the end of June 2009, according to real estate services firm Cushman & Wakefield.

The southern cities of Bangalore, Chennai and Hyderabad also witnessed an increase in mall vacancy rates that rose from 2.77 per cent in January to seven per cent in June.

While demand for mall space had been slow across locations, there was also an apparent preference for high streets in certain markets, the firm said in a statement here today.

 

In the south, the increase was also a result of the additional 1.2 million square feet mall space that became operational in Q2.

While vacancy in Bangalore almost doubled to 6 per cent and Hyderabad witnessed significant increase from 6 per cent in January to the current 17 per cent, Chennai remained fairly same as last quarter with the expected supply being deferred to year end.

Hyderabad witnessed the largest infusion of mall supply of approximately 4,50,000 sq ft followed by Bangalore which saw an additional 3,00,000 sq ft of fresh mall supply.

Kolkata (2,15,000 sq ft) and National Capital Region (1,75,000) were the other markets that saw addition of new supply to mall spaces. Many upcoming malls have been deferred to the future or in certain cases withdrawn given the rather lukewarm response from retailers, the release said.

Retail activities continued to be subdued for the second subsequent quarter in 2009 as retailers continued to remain apprehensive towards expansion across India.

Mall supply was only marginally higher by 3 per cent from the previous quarter and was recorded at 1.14 million sq ft in the April-June period.

Meanwhile, estimated mall supply for 2009 reduced by 50 per cent of the previous estimate on account of delays in construction projects, deferment of mall space and also some withdrawal of previously announced retail projects.

Thus, the expected mall supply by end of 2009 for seven major cities across the country was recalibrated to 8.55 million sq ft.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 27 2009 | 4:54 PM IST

Explore News