Malls are far behind than their completion schedules and there are number of factors for these delays that are responsible for making these ventures unsuccessful. Mall developers claim that they are the biggest losers as the size of their investment is much higher in the project whereas retailers and investors feel that they are the actual losers. Pallavi Majha carries out a realty check

Real estate industry is on the surge, and keeping pace with it is the retail industry, a key sector attached to it. India has been ranked as the fifth emerging retail markets by global real-estate consulting group Knight Frank, and the group has predicted an impressive 20 per cent growth for the organised retail sector in India by 2010. There are only 137 malls in the country at present however it can actually support 1,000 malls and shopping centres in more than 500 towns and cities. Though the malls and large-format grocery stores might be crowd pullers, but it is only 25 to 30 per cent of the top-end consumers who actually shop in these malls. Approximately 3/4th of Indian consumers, feel uncomfortable shopping in a sanitised, air-conditioned, steel and glass environment. They still prefer a traditional way of shopping in high streets.

Mall development in India

There is insurrection of mall development in India. Approximately, 300 malls are expected to be operational in India by 2010. However, retail experts, mall developers and retailers are not unanimous regarding the development of malls in India. Presenting the current mall scenario in India, Mr Mayur Toshniwal, Vice President and Business Head (North), Future Group, says “In India we see a robust retail industry trend for next two years. With organised retail sector being at the inflection point of the explosive growth, more and more projects are under pipeline. It would not be surprising if we see 300 to 400 more malls in the period of next 24 to 36 months. However, a majority of the projects are substantially behind schedule.”

Supporting the views of Mr Toshniwal, Mr Bappaditya Basu, Vice President - Retail Services, Trammell Crow Meghraj, says, “Real Estate in India does not have deadlines. It is taken for granted so there will be delay. It is an untold truth. The journey of real estate in India from mere sustenance to a cherished self-image has been long and arduous. The demand for property far exceeds supply.” Representing the retailer's opinion Mr Pattabi Rama Rao, President, Australian Foods India Limited and Director Landmark Limited, informs, “As per the reports presented by Retailers Association of India, we have 114 malls in India and nearly 285 malls are expected to come up in India over the next three years.”

Mr Rohit Malhotra, CEO, Realtech Group that is developing the City Emporio Mall in Chandigarh and the Capitol City Mall in West Delhi is confident about the group's deadline for its projects. Mr Malhotra informs, as far as the City Emporio Mall in Chandigarh is concerned, it is on schedule and we will be delivering it on time, within one year from the start of construction.
Further explaining the reasons for delay in mall construction he says, “From the time a project is conceptualised to its completion delays can take place due to a multitude of reasons.”

Presenting the prevailing conditions, Mr Gurpreet S Randhawa, Senior Consultant Technopak Advisors Pvt. Ltd. informs, “The total number of malls to be developed in 2006 were 137. Of these only 92 malls were new. Rest all are in the various stages of completion.”