Net leasing of retail space in shopping malls rose by 77 percent at 1.94 mn sq ft during Jan-June
On new supply of mall space, JLL said that new completions saw a decline of about 25 percent to 2.1 million sq ft in H1 2018 over 2.8 million sq ft in H1 2017.
Net leasing of retail space in shopping malls rose by 77 percent during the first half of 2018 at 1.94 million sq ft in the top seven cities on rising demand from global and domestic brands, according to property consultant JLL India.
"The retail scenario in India has started to show signs of maturity now, by concentrating on malls that will have longevity, sustainable business and have the scope of refurbishment and renovations in the future," said Ramesh Nair, CEO and Country Head, JLL India.
"Therefore, developer companies are now creating retail destinations rather than mere shopping centers. In the next few years, we will see a concentration of large format malls that will allow shoppers a variety of experience beyond purchase," he added.
Delhi (3,25,000 sq ft) and Hyderabad (3,58,000 sq ft) also saw healthy leasing activities. Mumbai saw total new leasing of 1,18,000 sq ft in H1 2018, while Kolkata witnessed leasing of 1,54,000 sq ft and Pune 33,000 sq ft. No new space was leased in Bengaluru.
With robust leasing activities and lower supply, the consultant said the rentals would remain stable and even firm up over a period of time.
"Development companies have been aiming at creating products that match the requirements of retail companies in terms of location, quality of development, as well as design and other relevant aspects to ensure sustained sales velocity," JLL said.
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