Malls occupancy falls in Q2 on slowdown
With the current slowdown in the retail sector, the average vacancy in malls across the country has increased to 19 percent in the second quarter of 2009.
New Delhi: With the current slowdown in the
retail sector, the average vacancy in malls across the country
has increased to 19 per cent in the second quarter of 2009,
against the first quarter of the year, according to global
consultant Cushman & Wakefield.
"The average vacancy across malls in major Indian cities
has increased from 10 per cent in the first quarter to 19 per
cent in the second quarter of this year due to slowdown in
uptake of mall space and churn amongst the existing clients,"
Cushman & Wakefield said in its latest report.
While Ahmedabad recorded the highest vacancy of around
39.4 percent, the national capital region had a vacancy of
around 26 per cent in the second quarter of 2009.
The study attributed the increased vacancy to retailers
quitting space in established malls, and a surge in the supply
of space but a relatively slower absorption.
Mumbai recorded a vacancy of nine percent in the quarter
under review, while Chennai witnessed mall vacancy of only one
per cent due to lack of new mall supply and restrained churn.
The study also said that while mall supply marginally
increased by three percent from the previous quarter to 1.14
million sq ft, by the end of 2009 it is expected to reduce by
50 per cent to 8.55 million sq.ft as against the estimates at
the beginning of the year.