The number of operational malls are likely to touch a massive 220 during the next two years from 25 last year.
“The total mall space in Delhi (including Gurgaon and Noida), Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, is expected to touch over 21.1 million sqft by 2005, International Council of Shopping Centres (ICSC) India director Amitabh Taneja said, quoting a survey here on Monday. The ICSC is a global organisation for retail and mall development.
“In addition to this, about 5.1 million sqft mall space is expected from the seven non-metros — Pune, Ahmedabad, Lucknow, Ludhiana, Jaipur, Chandigarh and Indore by 2005,” the survey said.
While the peripheral business district of Gurgaon currently dominates the organised retail real estate segment in the city, the next two years will see the “localisation” of the mall segment, with all major parts of the city slated to have at least one major mall, says the report.
The survey also speaks about development of speciality malls. “The National Capital Region is having a fair share of proposed specialty malls, which includes an auto mall and a mall dedicated to gold and jewellery retailing,” the survey said.
According to the survey, Mumbai offers second highest quantum of mall space with close to 4.8 million sqft sapce is scheduled to be operational by 2005-06. Several suburban malls south of Andheri are refurbishments of the existing industrial property, with some splattering of limited new developments. Some entertainment-related developments are also taking place in the mill areas of Lower Parel. Retail property developments in most of the northern and eastern suburbs of the megapolis comprise greenfield development, apart from a few reconfigured industrial properties. The Tardeo-Lower Parel (mill district) area accounts for about a fifth of the total supply of space, largely on account of the large-format refurbishment of mill property, the survey points out.
“After a slow start in mall developments, Bangalore is also catching up and the next two years will witness the city crossing the 2-million sqft-mark in the mall segment,” Mr Taneja said.
The booming mall market in the country has triggered global interest which has paved the way for setting up of an ICSC office in the country, and appointment of Mr Taneja as the head of the Indian operations.
Announcing the appointment, ICSC chairperson Kathleen Nelson said here on Monday, “there has been much enthusiasm among global retailers and retail estate developers about the prospects in India, as this country is currently witnessing hectic activity in the mall sector with over 200 malls coming up in the next couple of years. The ICSC feels this is the opportune time to make our presence here so as to be part of this development process.
“The mission of ICSC in India is to assist shopping centre developers, retailers and investors to make their business more profitable and as per world standards.”
The ICSC was founded in 1957 as the global trade association of the shopping centre industry and has 44,000 members in 75 countries, including the US and Canada.