With nearly 59 malls in the pipeline in South India,share of the region’s retail stock is expected to increase from 20 per cent to 36 per cent by 2016,says a survey by Jone Lang LaSalle (JLL).
According to the survey,the retail real estate activity in the South has gained notable momentum in recent years and it is expected to continue in the medium term.
“The share of the South states’ retail stock to the national stock is expected to record a notable increase from 20 per cent in 2011 to 36 per cent by the end of 2016.
Development of retail malls will be primarily dominated by local developers,” JLL said.
The survey said a total of 59 malls are either proposed or in various stages of construction across the three major southern cities — Bangalore,Chennai and Hyderabad.
With a dearth of mall supply,as opposed to a growing demand in recent years,a healthy absorption is anticipated in the coming years,the report said.
“Though initially,vacancy is likely to increase due to the upcoming sub-standard retail space becoming operational,with the mall stock in the south set to breach the 40 million sq ft-mark the vacancy by then is expected to witness a notable decline…,” it said.
Some of the prominent active developers in the southern market include Emaar MGF,Salarpuria group,Mantri developers,Lanco group,RMZ Corp,Prestige group,DLF,Kshitij group,Karle group,and Aparna constructions among others,it added.