Indian Real Estate Companies Postpone Mall Construction in 8 Cities: Cushman & Wakefield Report

According to property consultant C & W (Cushman & Wakefield), Indian real estate companies have delayed the construction of shopping malls in 8 major cities due to large vacant space in the existing complexes.

Mr. Jaideep Wahi,  Director Retail Agency, C & W India said, "This slowdown in mall construction need not be viewed as a negative growth indicator for the retail real estate segment. The current pace is, in fact, expected to help in maintaining a healthier supply to demand equation; especially for oversupplied micro-markets"

Highlights of  C & W Report..!

* The retail real estate market recorded a deferment of more than 30% of retail mall space against the projected supply for the first half of the year, 2012.

* The deferment was necessary considering the high vacancy rates in the shopping malls and cautious approach adopted by retailers on expansion.

* The 8 major cities - Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune -  witnessed a fresh mall supply of 2.27 million square feet during first half of 2012.

* About  10 lakh square feet of expected mall supply was deferred to second half of the year or next year.

* The overall vacancy rate for the major cities as of H1, 2012 stood at 19.6%, marginally higher than the previous quarter.

* NCR - National Capital Region -  saw the highest mall supply deferment of over 80% ensuring the city maintained 28% vacancy levels.

* NCR saw only 1.2 lakh square feet of mall supply in H1.

* Bangalore saw the highest mall supply of 1.5 million square feet in H1 2012.

* The rental values across most mall destinations within these 8 cities remained largely stable, except for certain micro-markets in Bengaluru, NCR, Kolkata and Mumbai where mall rentals have seen a growth over the previous quarter in the range of 2 to13 per cent.

* Elgin Road in Kolkata recorded the highest growth in mall rents at 12.4% over last quarter mostly owing to renewals of existing tenants at a higher value.

* Some prominent high streets destination recorded higher increase in rental values as against malls, reflecting the bent of interest amongst retailers for high-street.

* Select locations across Bengaluru (MG Road, Jayanagar, Koramangala, Vitthal Mallya Road) recorded increase in rental by 8 to 9 % over the previous quarter.

* Camac Street in Kolkata saw the highest increase in high street rentals at 25% followed by MG Road in Bengaluru at just above 9%. Gurgaon & Pune also saw increase in high street rents by 7 to 8%.

Contacts..!

Bangalore, 4th Floor, Pine Valley

Embassy Golf Links Business Park

Intermediate Ring Road

City/Country: Bangalore, India 560 071

Tel: 91 80 4046 5555 Fax: 91 80 4046 5566

Branch Manager: Naveen Nandwani

Media Contact: Sitara Achreja,  E mail: Sitara.Achreja@ap.cushwake.com, 

Chennai

Paramount Plaza, 5th Floor

No. 7A/ 22 Nungambakkam High Road

City/Country: Chennai, India 600034

Tel: 91 44 4299 5555, Fax: 91 44 4299 5566

Branch Manager: N. Hariharan

Delhi [HQ] 14th Floor, Tower C, Building 8

DLF Cyber City,  Gurgaon, India Haryana-122002

Tel: 91 124 4695555

Fax: 91 124 4695566

Branch Manager: Sanjay Dutt

Hyderabad, Unit 111, 1st Floor, Maximus 2B,

Mindspace IT Park, Hi Tec City

Madhapur, India Hyderabad 500081

Tel: 91 40 4040 5555, Fax: 91 40 4040 5566

Branch Manager: Naveen Nandwani

Kolkata

Apeejay House, Block A, 8th Floor

15 Park Street,  Kolkata, India 700 016

Tel: 91 33 3984 5216 / 5239 / 5235, Fax: 91 33 3984 5221

Branch Manager: Kaustuv Roy

Mumbai

Mafatlal House, First Floor, Padmabhushan HT Parekh Marg

Churchgate-  400 020

Tel: +91 22 6657 5555, Fax: 9122 2202 5165

Branch Manager: Kaustuv Roy

Mumbai Suburb, Block B-2, 8th Floor

Nirlon Knowledge Park

Goregaon (East), Mumbai, India 400 063 Tel: +91 22 6771 5555

Fax: +91 22 6771 5566

Branch Manager: Kaustuv Roy

 New Delhi- B-6/8 2nd Floor Commercial Complex

Opp.Deer Park, Safdarjung Enclave, New Delhi, India 110029

Tel: 9111 2619 2512, Fax: 9111 619 5829

Branch Manager: Sanjay Dutt

Pune - Onyx, 11th Floor

Survey no. 37/3 + 37/4+1, North Main Roa

Koregaon Park, Pune, India 411001

Tel: +91 20 6686 5555, Fax: +91 20 6686 5566

Branch Manager: Kaustuv Roy

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