New Delhi: The supply of retail space in shopping malls last year nosedived 79% to around a million sq ft in the seven prime cities of the country because of construction delays, says a PTI report citing CBRE report.
According to the report, the supply of organised retail space recorded at 4.7 million sq ft in 2013 in Delhi-NCR, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and Pune.
"New supply remained sluggish in 2014, with just about a million square feet of organised shopping space across Bangalore and Chennai becoming operational," CBRE South Asia CMD Anshuman Magazine said in the report.
Most of the retail projects were failed to be completed in 2014 due to construction delays. As a matter of fact, sluggishness in real estate restricted cash flows to developers and consequently leading to huge delays.
In the meanwhile, many domestic and global brands such as Starbucks, Dunkin Donuts, Michael Kors, Brooks Brothers, Krispy Kreme, Naturals Ice cream, and Fab India expanded their footprints in major cities.
Foreign retailers Burger King and Fat Burger have also started their India operation with opening their stores in Delhi. Luxury jewellery brand Bvlgari re-entered India with a store at DLF Emporio, Delhi.
However, much of the retail activities were observed in online segment. Various brands which were primarily operated through physical stores were seen jumping to online platform.
Famous retailers like Burton, Paper Dolls, Scotch & Soda, and Xiaomi inked exclusive agreement with Indian etailers to sell their articles rather looking to set up physical shop.
Quality retail space availability in developed markets of Delhi and Mumbai is likely to be tight, whereas rents in leading malls and high street are likely to increase marginally, according to CBRE.