India’s Mall Stock and Supply Trends: JLL December 2013 Report

A report by Jones Lang LaSalle India (JLL) states that the average size of malls in India is likely to increase in the coming years, as developers are focusing on project sizes that allow for a critical mass in terms of offering various formats and categories under one roof. The report emphasises that in 2014, the average size of malls is estimated to be around 380000 square feet, which is expected to increase to 470000 square feet in 2015 and further increase to 660000 square feet in 2017.

The upcoming malls are visibly adopting a structured approach in planning, executing and launching as per the ongoing trend. Retailers are showing a highest interest in upcoming retail projects that offer not only a good location, but have been optimised in terms of design and trade and tenant mix.

Focusing on the supply scenario, the report says that the pan-India mall stock for the top 7 Indian cities – Bengaluru, Delhi, Chennai, Kolkata, Hyderabad, Mumbai and Pune – is expected to increase from 76 million square feet in 2013 to 95.7 million square feet in 2015. Delhi NCR and Mumbai clearly lead among the 7 cities in terms of having the highest concentration of shopping malls, accounting for 62% of the pan-India mall stock. Bengaluru and Chennai follow, together constituting around 20% of the pan-India mall stock.

The report says that the stock of shopping malls in India stood at around 53.3 million square feet in 2010, and is expected to reach 107.8 million square feet by the end of 2017. The net addition of shopping malls from 2013 to 2015 is expected to be around 24.9 million square feet. Delhi NCR is expected to hold the dominant position in 2014 in terms of expected net addition of shopping malls.

 

In 2013, an estimated supply of around 5.2 million square feet was registered, which is a 22% increase over last year's supply. Chennai led with 1.95 million square feet of supply in the year, followed by Mumbai and Pune.