Business

Who said the mall frenzy is over? 100 new ones by 2022

Updated : January 23, 2020 06:34 AM IST

Among Tier 1 cities, MMR topped with 18 new malls, and NCR came next with 13 by 2022.

Bengaluru and Chennai will have 10 and nine malls, respectively.

Pune and Kolkata will see four and three new malls, respectively.

Despite low consumer spending in recent times, mall developers remain bullish on growth potential of organised retail. According to a property consultancy firm ANAROCK report, 100 new malls, spanning over 49 mn sq. ft, are scheduled to come up across the country by 2022.

Of the total new mall supply, the top seven cities alone will see 69 new malls. The remaining 31 malls will come up in Tier-2 and 3 cities such as Ahmedabad, Lucknow, Indore, Surat and Nagpur, among others.

West and south Indian cities will see almost equal number of new supplies. West India will get 36 new malls, followed closely by South India with 35 shopping destinations.

The north region will see a supply of 22 new malls spanning over 11 million sq. ft. area. However, east region will witness a modest supply of 7 new malls spread over about 3.5 million sq. ft.

Anuj Kejriwal, MD & CEO - ANAROCK Retail said: “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.”

"The retail sector drew over $2.8 billion PE inflows from 2015-2019-end, 59 percent 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.”

He said consumer spending will rebound as the government’s concerted intervention to push consumption will bear fruit in the quarters.

“Besides the Tier-1 markets, we are seeing major growth unfolding in Tier 2 and 3 cities. Markets such as Ahmedabad, Lucknow, Nagpur and Indore are seeing high demand from retailers.”

Among the Tier 1 cities,

The Mumbai Metropolitan Area (MMR) topped with 18 new malls to come up, and NCR came next with 13 new malls by 2022. In Hyderabad, 12 new malls will come up.

Bengaluru and Chennai will have 10 and nine malls, respectively. Pune and Kolkata will see four and three new malls, respectively.

Among the tier 2 and 3 cities, Ahmedabad stands out with as many as six new malls that will come up in the city by 2022.

Lucknow presents a similar picture and has plans for 4 new malls to be added by 2022. The western cities of Surat and Nagpur will see new supply of two malls each.

Who said the mall frenzy is over? 100 new ones by 2022

You May Also Like

Axis Bank Q3 net profit drops 36% to Rs 1,117 crore

HUL Q3 results: Net profit rises 19% YoY to Rs 1,921 crore, misses estimates

Bank of Baroda Q3 net profit rises to Rs 1,061 crore; NII up 8.6%

Trending on CNBC-TV18

recommended for you