Bangalore: Mall supply fell by over 50% in 2008 from the earlier projections, with as much as 11 million sq ft of expected supply deferred to the next two years, says a report by real estate consultants Cushman & Wakefield.
The report said that of the proposed 74 malls at the beginning of 2008, only 34 were delivered through the year.
Malls in National Capital Region recorded a high vacancy level of 24%, while the same was 15% in Pune. However, malls in South India recorded lowest vacancy levels, with Chennai at 1.2%, Bangalore at 3.1% and Hyderabad at 4.7%.
Despite the shortfall in mall supply in 2008, the vacancy rates have remained significantly high at a national average of 10%. This is largely due to uneven distribution of mall space in the major cities, where mall supply has been concentrated within a single district targeting same or similar audience profile, the report said.
In cities such as Delhi and Pune where the distribution of malls is fairly equitable, high vacancy levels are a result of inadequate quality of development which have deterred major retailers from venturing into these malls, the report said.
From the retailers’ point of view, the preference has still been largely for ‘premium high streets’ over malls, further aggravating the situation, it said.
However, the three south Indian cities witnessed lower vacancy levels due to relatively lower supply than anticipated, the report said.