Recently, Central has launched its first store at the Oberoi Mall in Mumbai, as opposed to the policy of having exclusive outlet, that it has been following till date.
Indicating that the company might repeat the exercise in other markets, Rakesh Biyani, CEO, Future Retail, said, "We are consciously going slow in signing new property deals in these cities as retailing at such high rentals doesn't make sense. The company had aggressively booked properties in 2005-06, which are now been delivered."
The wide gap between demand and supply has lead to a spurt in the realty prices in the markets like Mumbai, Delhi and Banglore. The cities are now likely to see a fresh supply as the company has opened shops in these cities.
For instance, the real estate major DLF's much awaited luxury mall, DLF Emporium (Delhi) and the UB Group's UB- The Collection (Bangalore) is expected to be launched in the coming months.
While Atul Ruia promoted Palladium, measuring 2 lakh square feet, will offer luxury shopping experience in Mumbai. According to the industry insiders brands have refrained from booking fresh properties as they anticipate a correction in realty prices.
Bappaditya Basu, associate director of property consultant, Jones Lang Laslle Meghraj, said, "The market is saturated as new properties have not come up while the rents have dipped since past few months. Similarly, the brands also want to observe the response to some of the new malls slated to open later this year."
