According to the survey, the supply of retail space in shopping malls last year fell sharply by 79 per cent to about a million sq ft in the seven major cities of the country due to construction delays.
The real estate builders continue to build malls in a saturated market and as a result, by 2014 there will be an increase in supply by 100 percent. Moreover online shopping is also another reason for the decrease in demand for retail space. People can shop from home and the stores are open 24/ 7 and it provide variety to the buyers. Shopping from stores and malls make it difficult for people to compare between price and features of products
According to a real estate expert, most of the retailers have shrunk the average size of their stores to reduce the rental burden. Now- a- days any good property which makes financial sense are leased by the retailers easily.
The malls which are best performing are always in demand by retailers and are in a position to pick their tenants. Mall owners have options of improving the tenant as well as making strategic improvements to the centre. These kinds of strategies are mainly implemented either by the existing mall marketing manager or by professionals. This year the retail segment is going to expect the supply of nearly one million sq. ft of mall space.
The remaining nine malls Grand Mall and Towers, Virtuous Xander Mall, Salarpuria World Market, Neo mall, Gardens Galleria, Forum Shantiniketan Mall, MSR Regallia Elements, Vaishnavi Sapphire and RMZ Galleria are in the peripheral business district.
The study revealed that out of 15 malls, Suraj Cambridge mall and Embassy Galaxy Mall which are in central business district are currently being built. While four malls are coming up in the secondary business district. The name of the malls are Vega Mall, City View, Orion Mall-2 and World GT Mall.
According to the recent survey by Vestian Global Workshop Service Private Limited said that there are around 15 malls which are under construction and is expected to get completed very soon. On top of this another 16 have been planned in the city.