No Quality Retail Space in Southern India

June 4, 2007	(Be the first to rate this story!)  Loading ...
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There is a lack of real estate opportunities for retailers in Southern states which have certainly hampered the region’s rapport as area offering potential growth.

Falling retail real estate in the region has led to the South accounting for just 22% of the total retail market in the country at a value of Rs 2,62,930 crore and a fifth of the 50 million people working in the sector, as per the data showcased by Images F&R in partnership with property consultant Cushman and Wakefield.

Around 50 million sq ft of space is going to come up across the country. However, only 16 million sq ft of the new construction will be a part of the South. An additional space of 41 million sq ft. will come up in the northern region. While in western India, around 35 million sq ft. of new development in retail sector is evaluated to be added by this year’s end. A large part of retail expansion in the South is likely to come from rapidly expanding tier-II cities like Kochi, Coimbatore, Vishakapatnam, Mangalore, and Mysore.

The Nilgiris chain, the country’s first supermarket, was established in Bangalore in 19045 whereas the Spencer’s Plaza is believed to be the country’s first mall. The situation is no same. There is lack of quality real estate space which has been a major concern for retailers.

With people’s growing appetite for quality products ands services, the South possesses a potential to make marks in the retail sector.

Retailing in the South has suffered partly as real estate developers concentrated on constructing the commercial space that house technology companies across the southern region.

Retailers in India lack the required skill that they need to learn as a part of mall management. Real estate developers such as Salarpuria are eager to cater the growing demand for quality retail space in South India. Salarpuria is constructing a 1.4 million sq ft. of Market City, a retail space within Hyderabad’s technology hub, the Hitech City.

In Bangalore, the developer will construct two shopping malls in the city’s western and northern suburbs at an average size of 0.65 million sq ft.

News Published Under:   Retail Market in India |

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