Excess retail supply forced to Realtors to transform Malls into housing projects

By Accommodation Times (www.ccommodationtimes.com)

Due to overflow in retail property market it forced to realtors to turn their commercial projects into residential projects, particularly Malls projects has been rapidly turning into residential projects. According to the market research approx 96 million sq ft of retail space is expected to be added by 2013 in the top 10 cities in India, while demand will be only for 34 million sq ft.
RMZ a Bangalore based corporation has recently transformed their 1.1 million sq feet mall plan into residential cum-hotel project. Earlier the firm has tried to minimize the size of the mall to 500,000 sq ft and add a new office space component. “Corp is now constructing luxury homes on the same location”, sources said.
Similarly, across the country there are several other realtors are planning to transform their Malls projects for multipurpose use or for resident purpose. Whereas, some micro markets in Bangalore will see an over supply of 168%, Hyderabad, on the other hand, from a present shortfall of 66% is headed for an oversupply that could go as high as 322% in 2014. The Mumbai Metropolitan Region will see an oversupply of 58% with Pune at 128%.