NCR realtors observe demand-supply mismatch in retail sector
After the Cushman & Wakefield report on national retail real estate market observing a deferment of more than 30 percent of retail mall space against the projected supply for the first half (H1) of 2012, there are speculations about the backdrop of the situation.
The National Capital Region (NCR) has seen the highest mall supply deferment of over 80 percent, and the vacancy levels also stand at 28 percent. The mismatch of demand and supply has been blamed on the project delays, with the macroeconomic picture and financial woes surrounding the projects looming large.
Many prominent developers have stated that current deferment in mall projects is primarily due to non-supportive approach of the banks that makes it hard for the developers to execute capital intensive mall properties.
Realtors observe that in places like Gurgaon the mismatch between demand and supply has reached an extreme where there is a decent shortage of organised retail destinations as due to longer break even tenure new developers are shunning away from building malls.
To read more real estate news:
Retail real estate market looks promising in India: CBRE
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