- 20 mn.sq.ft. by 2012; while Country’s ORS estimated to reach 95 mn. sq ft
- 6.4 mn. sq. ft. of retail space to be available in Mumbai by end of 2010
- 4.7 mn sq. ft. to be completed over the next two years
- 1.76 million sq ft of retail space currently vacant in the city
Mumbai, 11th May, 2010: *Knight Frank India, the country’s leading independent global property consultants, today announced the release of their in-depth research study on the Indian retail market entitled “*India Organized Retail Market 2010.”* The study provides a unique and insightful documentation towards providing a concrete understanding of the current market trends, evolution of the organized retail space and real estate retail supply. However, the key highlight of the report is the observation and analysis that provides a view on the demand-supply situation and prevailing rentals in each of the 7 major metros in the country. In relation, it provides a micro view of the Mumbai retail market as well as
details the factors influencing its growth.
Commenting on the launch of the report, *Mr. Rituraj Verma, National Director – Retail Agency, Knight Frank India* said, “This is the first report that ties together consumption with availability of retail space. Interpreting this report the right way would enable both developers and retailers to move towards profitable growth.”
The report reveals an in-depth analysis of the dynamics of Organized Retail Market and the Real Estate Retail Potential (RERP) to identify the oversupply or undersupply situation in the retail space. Knight Frank further estimates that by 2012, higher pace of real estate developments in comparison to the pace of organized retail market growth will create an oversupply situation of 21 million sq ft in 7 cities namely Mumbai, Pune, Hyderabad, Delhi, Kolkata, Bengaluru and Chennai. Its examination of the state of affairs of the retail market implies that the frenetic rental hikes witnessed during the boom will not haunt retailers until 2012.
“One of the key findings by our research team with regard to the city of Mumbai was a noticeable under supply of organized retail in several suburbs across the city. Our research has undertaken an extensive survey of all major operational and upcoming malls and 2 prominent highstreets in each of these 7 cities. The report determines the performance of the operational malls in terms of occupancy, rentals; retail formats and also foresees the demand-supply dynamics till 2012.” *says Dr. Samantak Das, National Head – Research, Knight Frank India. *
The report studies focuses on the top 7 cities namely Mumbai, NCR, Bangalore, Kolkatta, Chennai, Hyderabad and Pune and an in-depth case study of two major cities – Mumbai and Bangalore. Knight Frank research formulated an economic model to forecast the demand and supply dynamics for the period of 3 years (2010-2012). The dynamics of Organized Retail Market (ORM) and Real Estate Potential (RERP) provide insights into the oversupply and undersupply situation in the retail real estate space. This will help to identify the oversupply and undersupply situation in every zone for a period.