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Retail space supply in the next three years (2018 – 2020) is expected to touch 19.4 million square feet (msf), said JLL India. JLL India, real estate consultancy firm, in its recently study, said in the same period demand will also be about 15 msf.
The steady growth of supply will be accompanied by an equally stable growth in demand which is also expected to be at around 15 msf in the period of 2018 – 2020, said Ramesh Nair, CEO and Country Head, JLL India.
“Further, we expect a parallel rationalisation of existing mall spaces which will help the market avoid an oversupply situation. As a natural course of events, we can expect a few malls to close down or temporarily suspend their operations for repairs, renovation and upgrades. This will help the market create the necessary balance to maintain the rental values,” he added.
The total newly completed malls in 2017 was recorded at 5.6 msf which is expected to see an increment of close to 40 per cent year on year (y-o-y) and rise to 7.8 msf by the end of 2018.
The largest contribution to this will be coming from the two southern cities of Hyderabad (2.2 msf) and Chennai (1.5 msf) which will see significant influx of mall supply. Delhi – NCR will be witnessing the highest supply of 2.3 msf of new mall space in 2018, albeit recording a decline of 28% y-o-y since 2017.
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