According to a report by Cushman and Wakefield, India on retail real estate market a large new retail mall space was added in India admeasuring 1.94 million sq ft. in the first quarter which ended in March. This figure was actually much less than the expected 3.37 million sq ft. of mall space which was supposed to be added by this time as a result of delays in mall projects. Real estate agents agree that such reduction amounting to 50 percent was due to the delays in construction of mall projects.
This new space is expected to be available in the market from the next quarter, which is expected to supply new mall space of 4.25 million sq ft. According to Mr. Jaideep Wahi, director, retail services, Cushman and Wakefield, the first quarter has ended with positive results for the retail market. In his opinion the mall space has been moving cautiously to ensure that the demand supply ratio of the retail mall space remains stable and to maintain rentals, the high streets continue to face increase in demand and in interest too from a range of retailers.
Among the 8 major metro cities, Bangalore led the maximum supply of
retail mall space. Rentals of such space remained constant for the period except in cities like Ahmadabad, Bangalore and Hyderabad where the rents experienced a hike of 15-30% over the preceding quarter.
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