Despite low consumer spending in recent times, mall developers in India remain bullish on the growth potential of organised retail, according to latest research by Indian real estate services company ANAROCK, which found 100 new malls spanning over 49 million square feet (sq ft) are scheduled to come up across the country by the end of 2022.
Of the total new mall supply, the top seven cities alone will see 69 new malls spread over 35.5 million sq ft area. The remaining 31 malls over 13.5 million sq ft will come up in tier II and III cities like Ahmedabad, Lucknow, Indore, Surat and Nagpur, according to a press release from the company.
Region-wise, west and south Indian cities will see almost equal new supply. West India will get 36 new malls over 17.5 million sq ft area, followed closely by South India with 35 new malls over nearly 17 million sq ft. The north region will see 22 new malls spanning over 11 million sq ft area. East India will see a much more modest supply of seven new malls spread over nearly 3.5 million sq ft.
"The retail sector drew over $2.8 billion PE [private equity] inflows from 2015-2019-end, 59 per cent by foreign investors alone. Despite overall weak consumer spends, F&B, family entertainment centres, cinemas and beauty/wellness service outlets continue to flourish and demand new retail spaces. Consumer spending will rebound as the government’s concerted intervention to push consumption bear fruit over the upcoming quarters,” says Anuj Kejriwal, managing director and chief executive officer of ANAROCK Retail.
Mumbai Metropolitan Region tops with 18 new malls spanning 7.8 million sq ft. Delhi National Capital Region comes next with 13 new malls spread over 7.5 million sq ft. Hyderabad will see the launch of 12 malls over more than 4 million sq ft. Bangalore and Chennai will see an infusion of 10 and nine malls respectively, together accounting for 10.8 million sq ft. Pune and Kolkata will see four and three malls added respectively.
Among the tier II and III cities, Ahmedabad stands out with as many as six new malls slated to come up in the city by 2022 end. These new malls will be spread over 3.2 million sq ft. Both domestic and international brands are gung-ho on Ahmedabad; besides scoring high on consumerism, the city has a growing young population of entrepreneurs, information technology professionals and factory employees.
Lucknow presents a similar picture and has plans for four new malls to be added by 2022 end. The western cities of Surat and Nagpur will see two new malls each spread over 0.7 million sq ft and 0.85 million sq ft.
Fibre2Fashion News Desk (DS)