A recent analysis of mall occupancy trends in India has revealed that retailers specializing in jewellery, apparel, and home improvement are displaying a strong interest in well-established shopping centers located within Bangalore.
While Bangalore anticipates the addition of 400,000 square feet of mall space in the coming months, a survey indicates a decline in vacancy rates across the city's malls.
Key Findings:
- Bangalore stood out as one of the Indian cities reporting lower mall vacancy rates during the economic slowdown.
- Other cities experiencing similar trends include Pune, Chennai, Ahmedabad and Kolkata, benefiting from a lack of new mall space introductions.
- In Bangalore, the vacancy level decreased from 16% in the quarter ending September 2012 to 12% during the same period in 2013.
Factors Influencing Vacancy Rates :
The report attributes this decrease in vacancy to increased rental activities and the absence of new infusions of mall space within the Bangalore area. The stability in demand and supply dynamics during the quarter ending in September has led to a maintenance of the rental status quo. However, the survey indicates a potential increase in rentals for malls situated on Bangalore's main streets.
Furthermore, the report highlights the postponement of two mall projects in Bangalore, totaling 760,000 sq. ft. One faced deferment due to construction delays, while the other experienced a halt as a result of liquidity challenges.