Pune has second highest deferment of malls in India

Industry-watchers blame a host of reasons for the low occupancy,with many citing the ensuing global uncertainty for a slowdown in the retail trade. Realtors also agree to the perceived slowdown in the real estate market,with commercial properties in both Pune and Mumbai seeing a downturn.

In 2005,21 new malls were announced in the city but sources in the PMC said only half of them have come up till date. Areas where plans have been deferred include Camp,Aundh and Baner. In fact,parking woes have brought down commercial rentals in areas like Camp and MG Road.

While for the consumers,malls represent more choices under one roof,for the companies in question it is the high rentals of the malls that have to be reckoned with.

Anant Sardeshmukh,director general of Mahratta Chambers of Commerce Industries and Agriculture,said with the uncertainty in global economy,consumer spending on retail,especially high-end,has come to a standstill. “Thus,many of the high-end retail chains are struggling with low footfalls,” he said.

Another reason for the huge vacant places in Pune malls,according to him,is the failure of malls to understand the nuances of the local consumer sentiments. “FDI in retail,other than allowing for backward integration,was to allow this basic business tactic. We have to give some time to the industry to grow,” he said.

Realtor Sanjay Deshpande said the retail industry has failed to understand the local business sense and that accounts for low footfalls in malls. “The malls with high footfall are the ones with discount shops,” he said. Of the 10-12 malls only four or five are doing good business and that too at the food court and the multiplexes,he said.

Average Occupancy

*Property surveys show that on an average the occupancy of malls is around 40 per cent

*Other than the two malls in Hadapsar,which have reportedly 90 per cent occupancy,those on Pune Nagar Road have an average 10-16 per cent occupancy

*In Koregaon Park areas,malls have an occupancy of 34 per cent

*Average occupancy of malls in Swargate is only 10 per cent