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Even though India is witnessing low consumer spending and a sluggish economy, mall developers expect a boom in organised retail. As many as 100 new malls are to be established across India by 2022, according to property consultant Anarock.
The malls willbe spread across over 49 million square feet. The top seven metropolis alone will see 69 new malls, throwing open over 35.5 mn sq ft of space.
The remaining 31 malls with over 13.5 mn sq ft of space will come up in tier 2 & 3 cities such as Ahmedabad, Lucknow, Indore, Surat, and Nagpur, Anarock said in a statement.
Region-wise, western and southern Indian cities will see almost equal new supply.
The western part of India will see a surge in the number of malls as it is expected to get 36 new malls of over 17.5 mn sq ft area. This will be followed closely by South India with 35 new malls of over 17 mn sq ft. The northern region will see 22 new malls coming up, stretching over 11 mn sq ft area.
In the west, Mumbai tops the list with 18 new malls spanning 7.8 mn sq ft. Ahmedabad with six new malls, will stand out among tier 2 & 3 cities. It will be followed by Pune which will see four new malls.
The western cities of Surat and Nagpur will witness new supply of two malls each spread over 0.7 mn sq ft and 0.85 mn sq ft area.
The eastern belt of India will mark the establishment of only seven new malls spread over approximately 3.5 mn sq ft.
In the north,the National Capital Region will have 13 new malls spread over 7.5 mn sq ft.
Lucknow has plans for four new malls to be added by 2022-end.
In South India, Hyderabad will see the launch of 12 new malls of over four mn sq ft space, while Bengaluru and Chennai will see 10 and nine malls respectively, coming up, together accounting for 10.8 mn sq ft.
“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,” MD & CEO of Anarock Retail, Anuj Kejriwal, said.
According to Kejriwal, family entertainment centres, cinemas and beauty/wellness service outlets remain unaffected by the weak consumer spending.
“The retail sector drew over $2.8 bn PE inflows from 2015-2019-end, 59 per cent by foreign investors alone. Consumer investing will rebound as government’s concerted intervention to push consumption bear fruit over the upcoming quarters,” he said.
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