NCR observes 55% mall vacancy: ASSOCHAM
New Delhi- A survey made by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has revealed that over half of the total malls in Delhi-NCR are lying vacant.
Currently Delhi-NCR is witnessing 55 percent of total vacancy in malls. The mall vacancy rate of other prime cities of India are 52 percent in Mumbai, 51 percent in Ahmedabad, 50 percent in Chennai, 48 percent in Hyderabad and 45 percent in Bangalore.
The chamber lists out reasons for increasing vacancy levels in malls which are economic slowdown, poor designing, poor facilities and lack of robust revenue generation model.
It said the industry is also facing problems like multiple taxes, lack of clarity in policies and shortage of experts in areas such as supply chain and store management.
ASSOCHAM has said that many developers are delaying or withdrawing mall development projects as the response from retailers has become very low. Several retailers are holding back on new store openings and focusing on existing stores.
Diminishing demand for mall retail space in cities has led to decline in mall rental values. Delhi-NCR has recorded the sharpest decline in mall rental values followed by Mumbai, Ahmedabad, Chennai, Hyderabad, Bangalore, Kolkata and Pune, records the survey.
During the survey, many shop owners said that increasing rents work only if they are affordable for retailers to do business.
Developers reluctant to take up new road development projects
ASSOCHAM, Associated Chambers of Commerce and Industry of India, Delhi NCR, mall rental values, mall retail space, mall vacancy in india, malls in Delhi-NCR, New Delhi, Shopping malls, shopping malls in india
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