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Mall addition slows down in India

Mall addition in India has slowed down in the first half of 2018. Malls or shopping center real estate have stagnated over the years due to the advent of the e-commerce market and the dearth of quality good mall supply. The industry is likely to see some consolidation with developers opting for only large format retail destinations amid rising e-commerce penetration.

Among the top seven cities, Mumbai and Delhi saw a substantial fall in new mall completions. The retail scenario in India has begun showing signs of maturity. It’s all about malls that will have longevity and have scope of refurbishment and renovations in future. Developers are now creating retail destinations rather than mere shopping centers. The next few years will see a concentration of large format malls that will allow shoppers a variety of experience beyond purchase.

For now, vacancy levels are coming down. Malls under development are getting completed. Mall vacancies remained low in the sub-ten per cent category in many cities in the second quarter of calendar year 2018. Current mall inventory across eight cities at 232 malls registered a 16 per cent increase compared to the last three years.

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