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It’s
a ‘Mall’ World in Mumbai Suburbs
By
Staff Reporter
It
is truly said that change is an essential part of life. Nothing
exemplifies this more than the mall mania that is sweeping Mumbai’s
suburban areas. With disposable incomes on the rise, there has been an
increased demand for large, one-stop shopping centres in recent times.
There is a proliferation of shopping malls and supermarkets on the
anvil with the organized retailer sector developments in Mumbai set to
take off over the next year. Close to two million sq.ft. of retail
space is expected to come up in Mumbai by 2004. With the infusion of
entertainment, these places are rewriting the rules of the retail
frame and converting the fundamental activity of shopping into a
lifestyle statement.
This
retail revolution is also an indicator of the sea change that has
taken place in the suburbs. The upward shift in resident profile and
rising disposal income levels have triggered off a demand for
top-class retail outlets, which combine shopping with entertainment
facilities to make it a family outing of sorts. This has a positive
impact on all commercial activities in their vicinity. Just as
amenities add value to a residential locality, a high profile retail
establishment also substantially enhances the visibility of the
locality as a whole.
As
realtors point out, a branded store occupying a large area adds to the
character of the neighbourhood. By providing a landmark for reference,
it adds value in terms of people’s perception of the entire are.
Another advantage is that it results in a greater inflow of utilities
and conveniences. Banks, food shops, leisure and entertainment centres
tend to congregate near landmarks, so the commercialisation of a
hitherto low profile region would definitely get a boost. Since
providers of various goods and services are drawn to the area, it
leads to a build of the infrastructure. The flow of more goods and
services builds up the business profile of the region. There is also
an improvement in the physical appearance and ambience of the area,
with most of the large retail outlets contributing to the upkeep and
landscaping of the surrounding area.
This
enhancement in image and improvement in infrastructure is also felt to
be a contributing factor towards a potential rise in the capital
values of the region in the long term. It is an accepted fact that
while having a high profile, well maintained locality will not
directly impact property prices, it definitely affects buyer
perception, which is the bottom line when it comes to deciding the
final rate which deals are transacted.
As
a recent India Retail Review Report by Knight Frank India points out,
the success of large malls has encouraged a number of developers to
join the retail bandwagon. However, the report also points out that
though rentals achievable are marginally higher than high street
rentals, there are a number of challenges that these developers will
face. In Mumbai, for example, malls will have to compete with
thousands of local corner shops that pay nominal rents on account of
protected stature. The other major issue is of ease of purchase,
Groceries and other domestic supplies from these corner shops can be
availed of telephonically in conjunction with credit periods ranging
randomly from 30 to 45 days.
Is
there a future for malls ? Yes, of course there is, on the conditions
that they provide the wonderful ambience associated with them
internationally as well as the right tenant-mix. It is the ‘
experience’ factor that will ultimately differentiate a successful
mall for a run-of-the-mill one. However, a lot of factors have come
together to make this experience enjoyable, including a clean
environment. A wide range of shops that complement each other,
adequate restaurant facilities and ample car parking.
Most
of the new mall retail development in the central suburbs are taking
place in Mulund on the L.B.S Marg and in its vicinity.
The
Nirmal Group is setting up a five lakh sq. ft. mall at its Nirmal
residency project, while the Runwal Group is putting up one measuring
three lakh sq. ft. Marathon Realty, has launched Marathon Max, a two
lakh sq. ft. commercial complex-cum-super market and entertainment
centre. Even Cross roads is setting up shop there.
The
two malls are expected to bring in a host of new brands. The one being
set up by the Nirmal Group has a list of prominent names including
Shoppers Stop, McDonalds, Pizza Hut, Arcus, the one
stop shop for construction materials, an interior amusement
park by Appu Ghar and a six screen multiplex.
Explains
a realtor, “Earlier there was no shopping complex or shopping centre
worth mentioning in the central suburbs.
Mumbai’s Massive Malls
By
Staff Reporter
Mumbai is having massive mall boom. Almost 250 malls will be soon
available for occupation. Of these, 60 lakh sq.ft. is already
functional and other 30 % will soon come in market in various areas of
Mumbai and its suburbs.
Although
the commercial premises and complexes are still hard to sell, rates
have gone up by 35 %. The trend in commercial premises are not as
encouraging as residential but natural appreciation is constant
throughout the country.
There
are hundreds of commercial complexes coming in Mumbai, Navi Mumbai and
Thane. Pune is not lacking behind. The city is inviting international
attention by giving world class IT infrastructure and ambience.
Magarpatta City and Gera Group is giving one of the best building for
occupation in Asia.
While
the IT related developments are on slower track the retail market is
emerging throughout the country. Multiplexes and shopping malls are
the order of the day.
To
encourage such developments the Andhra Pradesh Government is
contemplating to provide sales tax concessions within uniform floor
rates to various industry segments. The concept of speciality stores
and restaurants is growing. After the bust of dot com boom, the retail
sector developments in Mumbai, are set to accelerate, due to the
success of ‘ Crossroads’- speciality shopping malls, Shoppers Stop,
Haiko and other such developments.
The
retail industry and the subsequent developments of shopping malls and
multiplexes in Delhi are on fast track. Retail development in Delhi
and in surrounding areas like Noida and Gurgaon, is in full swing.
Bangalore too is now awakening to the retail development in the
aftermath of slowdown of technology sector. Pune, Baroda, Ahmedabad,
Hyderabad and Chennai are the cities where retail development and
multiplexes are in advance stages of development.
It
seems the lifestyle of people is changing be it shopping or
entertainment. This type of development is adding valuable properties
and is good for the property market and hence must be encouraged.
The
government and local bodies e.g. Municipal authorities must take
positive and co-operative approach while sanctioning such projects and
charging concessional property taxes on them.
The
success of malls and multiplexes depends solely on the availability of
space at rational lease rents.
In Mumbai the introduction of
a property tax system based on the market value of the property as
against the earlier practice of calculation based on the age of the
property, may lead to high rate of property taxes. This will
discourage the parties to take the space in malls and multiplexes.
Rationalisation of levies and taxes should be taken up on priority
basis to encourage the development of retail properties.
