Mumbai: Mall supply fell by more than 60% in 2012 as developers remained cautious and delayed their retail projects in a slowing economy, according to a DTZ Research report on Tuesday.
Even the opening up of the multi-brand retail sector to foreign direct investment in September failed to improve retailers’ sentiments with places such as Delhi and the National Capital Region (NCR) recording an increase in vacancy levels as retailers shut low-performing stores in some locations, the report said.
Pune witnessed the sharpest drop in new mall supply, recording an 87% drop from the previous year, followed by Mumbai at 72% and Delhi NCR 70%.
To be sure, the total mall space stock across seven major cities had an increase of 5% in 2012 to 66 million square feet over the year ago.
Retail rents across malls remained largely unchanged in the December quarter, said the report.