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Retail space demand in malls may rise 81% this yr: JLL

Press Trust of India  |  New Delhi 

The net demand for space in malls is expected to rise 81 per cent this year, driven by strong economic trends and higher purchasing power of young population, a JLL report said. According to the property consultant's latest estimates, supply may increase 39 per cent during calendar year 2018 in seven major cities -- Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, and The net leasing of space in malls is estimated to rise at 5.8 million sq ft in seven cities during 2018 from 3.2 million sq ft last year, the report said. Supply of space is likely to increase to 7.8 million sq ft in 2018 from 5.6 million sq ft last year, it added. "The sector of is going through a fresh period of growth which is backed by strong economic fundamentals," JLL said. There has been an increase in interest from investors which was seen with investments of over USD 750 million in 2017, he added. "Encouraged by urbanisation, young population and rising proportion of nuclear families in urban locations, over 70 per cent of consumption growth in the next 15 years is expected from population aged 15-59 years, with increased per capita consumption.

This, along with the opening up of the FDI route for brands entering into India, will further boost investments," he said. During 2018-20, JLL has pegged supply of space in malls at 19.4 million sq ft, while demand will be about 15 million sq ft. The expects 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," the report said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, February 15 2018. 15:41 IST
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