'Mega' city under mall mania

20 malls expected to come up in different parts of the city at an investment of Rs 700cr

With the renewal in the real estate sector and the Union government's announcement that Ahmedabad will be accorded mega city status, it seems as if a mall fever has gripped the city.

As many as 15-20 malls, with an estimated investment in the rage of Rs 20-50 crore each, are already in different stages of completion in the western parts of the city, even as developers here are upbeat over the trend.

According to industry experts' estimation, in about two years time from now, there will be at least 20 malls ready in Ahmedabad with a total investment of about Rs 700 crore.

At present Ahmedabad has less than half-a-dozen malls. Developers here say that fast food chains, organised retailers, lifestyle product stores, multiplexes and others are likely occupants of these upcoming malls. Several smaller buyers are also booking shops in these malls to ride piggyback on the footfalls that are expected to shoot up considerably in the malls.

On Thursday the Ahmedabad-based J P Projects laid the foundation stone for 'Iskcon Mall' in the rapidly developing Sarkhej Gandhinagar area of Ahmedabad. J P Gupta, director, J P Projects, said this will be the largest mall in Ahmedabad and will be spread over 3.50 lakh square feet. "We expect 30 organised retailers, including Shoppers Stop and Westside to set up shop in Iskon Mall," he said.

Leena Chudasama, project manager for R Cube, an upcoming mall on Drive In Road by Divyam Real Estate Private Ltd (DREPL), says that the mega city status has literally fuelled a mall fever in the city.

"The new tag given to the city has generated great confidence in the real estate developers. Now Ahmedabad has a better identity and developers are confident about the rapid development of the city, especially the western parts," she said.

Chudasama added that Ahmedabad lags behind cities like Noida, Indore and Bangalore in terms of modern-day shopping facilities but the pace of development of malls is ensuring that the city will be at par with them.

R Cube is to be built over 2.10 lakh square feet and is expected to be ready within one-and-a half years. The mall will house a multiplex, food courts, about 200 shops and a sports arena.

But there are developers who believe that the mall culture is just an extension of the good times that the real estate industry is at present passing through.

Noted developer, the Bakeri group, is currently working on two malls in strategic locations of the city and that these were finalised even before the Union finance minister accorded mega city status to Ahmedabad.

"There were a number of projects on cards of real estate developers even before the Union finance minister gifted Ahmedabad the status of a mega city. New mall projects are being announced because investors are willing to buy with the feeling that they will receive good returns on their investments," said Pavan Bakeri of Bakeri Engineers and Industries.

Speaking about the feasibility of malls, Bakeri said, "The value of ongoing projects can be estimated at about Rs 700 crore at today's value. The profit margins are not so high in the industry as the prices of land on promising locations have also shot up recently. There are malls coming with focus on small to big buyers and there should be market for all with organised retail players venturing in the state."

The director of Diamond Infrastructure Pvt Ltd, Hasmukh Gadhecha, said, "The mega city status has definitely fueled the pace in the industry. We are expecting good investments for urban development following the new status for the city."

Gadhecha has developed the Super Mall in Ahmedabad a year ago.