Just sometime back, the `shop till you drop' mantra of Indian consumers spelt nirvana in terms of business for real estate developers. But now, with boom time having become a thing of the past, the correction in the realty sector has hit the retail space too.
According to latest figures, the top eight cities in the country are witnessing a 20% vacancy across 40 million sq ft of operational mall space. The twin reasons for this huge vacancy is rising rental values and lack of quality space.
SundayET, along with global real estate services firm Cushman & Wakefield, conducted a survey in 112 malls across the top eight cities which have more than 8.5 lakh sq ft of vacant space. The study found that all the retail space that has been developed in the last decade has not been able to get the desired retailer patronage.
Most of the supply has come in the same micro-markets targeting the same catchment and created an over-supply within respective neighbourhoods. Of the 112 malls across these cities, only a handful are recognised as successful mall developments, the survey stated. Leading the pack of vacant malls is Ahmedabad -- where there is 34% space vacant.
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