South to dominate in growth of malls by 2016: Report
According to global real estate services firm, the retail real estate activity in the South has gained notable momentum in recent years and it is expected to continue in the medium term.
"The share of the South states` retail stock to the national stock is expected to record a notable increase from 20 percent in 2011 to 36 percent by the end of 2016.
Development of retail malls will be primarily dominated by local developers," JLL said in a report.
A total of 59 malls are either proposed or in various stages of construction across the three major Southern cities–Bangalore, Chennai and Hyderabad, it said. "With 59 malls in the pipeline, these southern cities will represent 56 percent of the country`s malls between 2012 and 2016. The retail stock in this region is set to breach 40 million sq ft by 2016," it said.
With a dearth of mall supply, as opposed to a growing demand in recent years, a healthy absorption is anticipated in the coming years, the report said. "Though initially, vacancy is likely to increase due to the upcoming sub-standard retail space becoming operational, with the mall stock in the south set to breach the 40 million sq ft-mark the vacancy by then is expected to witness a notable decline considerably, it said.
Some of the prominent active developers in the southern market include Emaar MGF, Salarpuria group, Mantri developers, Lanco group, RMZ Corp, Prestige group, DLF, Kshitij group, Karle group, and Aparna constructions among others, the report said.