WAY FOWARD - BACK IN DEMAND: RETAIL REAL ESTATE [ NOIDA]


WAY FOWARD - BACK IN DEMAND: RETAIL REAL ESTATE [ NOIDA]


Recent reports suggest that there has been an upswing in demand for retail spaces
The demand-and-supply equilibrium decides the price points of all forms of the real estate. At a time when there have been different views on demand and supply of residential units in many parts of the NCR, there are segments that have been witnessing an upward trend. A recent report by CBRE said, “As a consequence of the deferred supply of fresh mall space during the first two quarters of 2015, there has been a rising de mand for retail space across high streets of leading cities such as NCR, Mumbai, and Bengaluru.“

The lack of quality space has also given more bargaining flexibility to popular shopping centres, leading to the emergence of the performance guarantee model, wherein brands are required to guarantee a certain amount of business to the mall developer, it said.

Mall clusters in prime retail markets such as South Delhi, Central Mumbai and East Bengaluru witnessed an increase in rents as most global brands pre ferred these prime shopping locations. “Malls in the suburban districts of Noida and Gurgaon (NCR), Bengaluru and Kolkata, meanwhile, maintained stable rental values during H1 2015,“ it said.

The second half of 2015 is likely to witness fresh supply in addition to the tune of 6 million sq ft in cities such as the Delhi National Capital Region (NCR), Bengaluru, Pune, Hyderabad, Mumbai and Kolkata. More than 60 per cent of this fresh mall space anticipated in H2 2015 is expected to come up in the NCR, which is likely to witness the completion of key shopping centre developments in the next six months.

 

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