Coming in the wake of demonetisation, a recently released report by Cushman & Wakefield has estimated approximately 11 msf of mall supply to become operational across the eight cities of Ahmedabad, Bengaluru, Chennai, Hyderabad, Mumbai, Kolkata, NCR, and Pune.
The report claimed that Hyderabad, which is among the least-penetrated markets, will likely witness the highest supply of malls during the year.
“Spanning 2.6 msf, eight malls are likely to become operational in Hyderabad during 2017. While these malls would be spread across the city, majority of the malls would be seen in the north-west quadrant in locations such as Kondapur, Gachibowli and Chandanagar”, it added.
Following the lead meticulously is the city of Chennai that is expected to witness the supply of 2.5 msf during 2017 spanning across five malls. This is the cities first dalliance with significant supply since 2013.
“While most of the supply is likely to be in seen in peripheral locations such as Vandalur, Navalur, two of the malls will become operational in Velachery during the year”, the report chimed.
Mumbai, which has seen a sluggish supply of malls over the last few years, is also set to take up rejuvenation with the expected supply of 2.3 msf across three malls. A mall each is expected to come up in Navi Mumbai, Mulund and Bandra-Kurla Complex.
“Bengaluru too is likely to witness a frenzied supply with 2.0 msf of mall space expected to become operational during the year across five malls spread across submarkets such as Whitefield, Vijaynagar, Yelahanka, Bannerghatta Road and Koramangala. Owing to the current oversupply of malls in Delhi-NCR, developers are likely to rationalize upcoming supply, with the city likely to witness only 0.2 msf of supply this year”, the report concluded.