No new mall supply in Bangalore
Bangalore witnessed no new mall supply during first half (H1) of 2014. This has been attributed primarily to the delay in approvals, which led to the deferment of upcoming supply as stated by Cushman & Wakefield in its latest retail reports.
Meanwhile, the city’s mall vacancy level registered a dip of 0.4 percentage point and was noted at 7.1 percent towards the end of Q2 2014 due to the absence of new mall supply and moderate demand from apparels, F&B, footwear and electronics retailers.
Although most locations in main streets and mall micro markets recorded stable rental trend this quarter, select main streets and mall micro-markets registered a drop in rentals. Whilst Cunningham Road and Mysore Road mall micro markets witnessed a decline of 10-13 percent in rentals in the wake of weak trading activity; Bannerghatta Road mall micro market recorded a drop of 3 percent in order to keep rentals competitive and attract newer brands.
The supply of the mall might get back into normal by the end of this year as is being expected in the market. The mall vacancy level might take some time to come back to normal.
Source: The Hindu Business Line
