No Fresh Supply of Mall Space for South India between January and March

Published: September 8, 2009

The three major cities in south India — Chennai, Hyderabad and Bangalore —did not witness fresh supply of mall space between January and March this year, according to Cushman & Wakefield. However, these cities would see supply of 4.35 million sq ft by the year end, the real estate services firm said in its report recently. “Retail real estate across India continued to reel under the current economic pressure while retailers continued to show their apathy towards expansion plans.”

Though Bangalore witnessed no new supply, some sporadic leasing activities in the existing malls kept rentals across established locations like Mysore Road and Vittal Mallya Road stable. Rental values in upcoming malls, however, recorded some correction. Bangalore is likely to see about 2 million sq ft of mall supply in 2009, of which approximately 0.3 million sq ft is expected in the Whitefield micro market during the second quarter of 2009.

Chennai did not witness any new mall supply during the first quarter of 2009 and rentals dropped by eight per cent at central Chennai while western and southern regions remained stable. Hyderabad recorded some of the highest mall rental corrections ranging from 25 per cent to 29 per cent due to restrained demand from retailers. Main street rentals also saw corrections between 5 per cent and 20 per cent largely due to renegotiations and restrictive demand.

Source: Indian Realty News

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