DELHI: Supply of retail space in shopping malls is expected to more than double in 2014 to 11.7 million square feet in the top seven cities of the country compared to last year, according to a report by property consultant JLL.
During 2013, these 7 cities - Bangalore, Chennai, Delhi-NCR, Kolkata, Hyderabad, Mumbai and Pune - logged an estimated supply of around 5.2 million square feet, taking the total shopping mall stock to 76 million square feet (sq ft).
According to Jones Lang LaSalle (JLL) India report on "Retail Real Estate', the total shopping mall stock is likely to reach 87.7 million sq ft by 2014, representing an addition of 11.7 million sq ft of new supply this year.
"In 2013, an estimated supply of around 5.2 million square feet was registered - a 22 per cent increase over last year's supply of shopping mall space.
"Chennai led with 1.95 million square feet of supply in 2013, followed by Mumbai and Pune. In 2014, Delhi-NCR is expected to hold the dominant position in terms of expected net addition of shopping malls," JLL India Managing Director - Retail Services Pankaj Renjhen said.
Among the seven cities, Delhi-NCR and Mumbai have been leading in terms having the highest concentration of shopping malls, accounting for 62 per cent of the total stock.
Renjhen said 2014 would witness increased supply of mall space as most of the retail projects were launched in 2009-10 and it takes 4-5 years to complete them.
That apart, Renjhen said that DLF's large shopping mall of about 2 million sq ft in Noida would be operational next year.
Highlighting an emerging trend in retail real estate, he said the average size of malls 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.
"In 2014, the average size of malls is estimated to be around 3,80,000 sq ft, which is expected to increase to 4,70,000 sq ft in 2015 and further increase to 6,60,000 sq ft in 2017," he added.
Renjhen also mentioned about an increasing trend among upcoming malls to adopt a structured approach in planning, execution and launch.
"The importance of formulating an optimal tenant mix to ensure the maximum utilisation of retail space is now recognised and accepted by almost all major mall developers," he said.
Consultant said that retailers are showing the 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.