Retail space supply down 83% in 2012

This, as developers focused on completing existing projects, says study

Retail space supply declined 83% in 2012 compared to 2011 as developers focused on completing existing projects, says a new study.

Around 2.5 million sq ft of retail supply hit the makets in 2012 compared to 15 million sq ft in 2011, said global property consultant CBRE in a report 'Indian Retail Market View H2, 2012.'

"Developers remained focused on attracting tenants in completed properties and reducing existing vacancy levels, rather than focusing on launching new projects. Most of the supply pipeline is scheduled for completion in 2013; by when the existing vacancy levels might reduce," CBRE said.

Anshuman Magazine, Chairman and Managing Director of CBRE, South Asia said, “Despite the large dip in prime retail space supply across key cities last year, the good news is that retailers continued with their expansion plans. This positive sentiment is indicative of retailers taking a long term view of the Indian economy despite the short term struggle. The Government’s bold and welcome move of allowing FDI in retail has further contributed to this positive sentiment.”