Saturday, April 03, 2010

India: 30% Mall Vacancy Rate in Cities, Falling Rents

by Bill McBride on 4/03/2010 11:14:00 PM

We rarely discuss India ...

From Praveen Singh at the Indian Express: Sprawling Malls, empty spaces

According to reports, the average vacancy across malls in major cities rose to over 30 per cent last year. ...

Jones Lang LaSalle Meghraj (JLLM), a global property consultant, says that out of 17.3 million sq ft supply of retail space across the country in 2010, only 9.3 million sq ft is expected to be absorbed. ...

[T]here has been a continuous fall in retail rentals. A Cushman & Wakefield (C&W) survey revealed that certain pockets of Delhi, Gurgaon, Chandigarh, Kolkata, Hyderabad, Mumbai, Pune and Bangalore are witnessing severe decline in rentals. The NCR, which received the highest quantum of mall space last year, saw a rental correction of approximately 30 to 60 per cent in locations such as Noida and Gurgaon. Likewise, high streets like Linking Road and Kemps Corner in Mumbai, Cathedral Road and R K Salai in Chennai, and Ganesh Khind Road in Pune witnessed a 13 to 20 per cent drop in rentals.
It appears there was a commercial real estate bubble in India too.

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