New Delhi (NVI): Around 100 new malls are scheduled to come up across the country by 2022-end, according to a research.
The mall developers have remained bullish on the growth potential of organised retail, despite low consumer spending in the recent times, says the research by ANAROCK property consultants.
The demographics of the malls to be built are divided into 3 tiers. In Tier 1, the top 7 cities alone will see 69 new malls, of the total new mall supply. The remaining 31 malls will come up in Tier 2 & 3 cities such as Ahmedabad, Lucknow, Indore, Surat and Nagpur, among others.
Region-wise, west and south Indian cities will see almost equal new supply. West India will get 36 new malls, followed closely by South India with 35 new malls. The North India region will see a supply of 22 new malls spanning over 11 mn sq. ft. area. East India will see a much more modest supply of 7 malls spread.
“2019 was defined by significantly lower retail leasing, so this generous new upcoming mall supply over the next three years testifies to the confidence of private equity investors in Indian retail’s pent-up potential,” says Anuj Kejriwal, MD & CEO, ANAROCK Retail.
“The retail sector drew over $2.8 billion private equity (PE) inflows from 2015-2019-end, 59% 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,” Anuj added.
Besides the Tier 1 markets, we are seeing major growth unfolding in Tier 2 & 3 cities. Markets such as Ahmedabad, Lucknow, Nagpur and Indore are seeing high demand from retailers.
Ahmedabad stands out with as many as 6 new malls slated to come up in the city by 2022-end. Both domestic and international brands are gung-ho on Ahmedabad; besides scoring high on consumerism, the city has a growing young population of entrepreneurs, IT professionals and factory employees.
Lucknow presents a similar picture and has plans for 4 new malls to be added by 2022-end. The western cities of Surat and Nagpur will see new supply of 2 malls each.
