Shopping malls supply in 2014 dips 79% on construction delays

New Delhi, Jan 20:

The supply of retail space in shopping malls last year fell sharply by 79 per cent to about a million sq ft in the seven major cities of the country due to construction delays, property consultant CBRE said today.

The supply of organised retail space stood at 4.7 million sq ft in 2013 in the seven cities Delhi-NCR, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, and Pune.

New supply addition for the entire year remained sluggish, with just about a million square feet of organised shopping space across Bangalore and Chennai becoming operational, CBRE South Asia CMD Anshuman Magazine said.

A significant number of prominent retail projects were not completed till 2015 as projected earlier, mainly due to construction delays, he added.

CBRE noted that a number of shopping centres in Delhi-NCR, Hyderabad, Bangalore and other prominent cities were expected to be completed by 2014-end but they were delayed further.

A slowdown in the real estate sector has affected the cash-flow of developers, leading to huge delays in completion of housing and commercial projects.

According to CBRE, prominent global as well as domestic players such as Starbucks, Dunkin Donuts, Michael Kors, Brooks Brothers, Krispy Kreme, Naturals Ice cream, and Fab India expanded their presence across Indias leading cities.

Global retailers Burger King and Fat Burger made inroads into the country as well, with stores in Delhi. Sri Lankas premier spa lifestyle brand, Spa Ceylon, also made its India debut with a first outlet in Mumbai, the report said.

Luxury jewellery brand Bvlgari re-entered India with a store at DLF Emporio, Delhi.

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Shopping malls supply in 2014 dips 79% on construction delays