Mall space is multiplying
Over the next three years, the central suburbs will see the addition of nearly 7 million sq ft of commercial retail space, which almost equals Mumbai’s present retail space of 8.72 million sq ft.Updated: May 12, 2010 02:20 IST
Over the next three years, the central suburbs will see the addition of nearly 7 million sq ft of commercial retail space, which almost equals Mumbai’s present retail space of 8.72 million sq ft.
Mumbai will see the addition of a total of 11.26 million sq ft, of which the central suburbs will account for 7 million sq ft, with Thane alone seeing an addition of 1.93 million sq ft.
The expanding residential catchment area has created the need for quality retail space, which explains the emergence of all these new malls, says real estate consultant Knight Frank’s report, India’s Organised Retail Market.
The central suburbs are seeing accelerated growth because most of the industrial belt, spanning the LBS Marg area between Sion and Thane, or Ghodbunder Road in Thane, is being converted into residential complexes.
The western suburbs will see the addition of 2.26 million sq ft. Navi Mumbai will get 1.4 million sq ft — the island city will see the smallest rise — 6.2 lakh sq ft.
All this additional space will get added in a phased manner, with the addition of 6.4 million sq ft in 2010, 3.1 million sq ft in 2011 and 1.6 million sq ft in 2012.
The addition will also mean an oversupply in the market. The oversupply will be 3.66 million sq ft in 2010, 3.56 million sq ft in 2011 and 1.31 million sq ft in 2012.
Currently, the highest concentration of retail space in Mumbai is in the western suburbs, with 3.7 million sq ft, accounting for 43 per cent of total commercial retail space in the city.
This is flowed by the central suburbs, which, at 2.4 million sq ft, have 27 per cent of the city’s retail space. Navi Mumbai and the island city have the lowest size of retail space, at 15 per cent, or 1.3 million sq ft.
On the flip side, mall vacancy — which means vacant retail space inside a mall — is also highest in the central suburbs, with 29 per cent of the malls’ area not finding any takers.
Poor vacancy has been attributed to poor mall design. The lowest incidence of mall vacancy is in the island city, at 4 per cent.