chapter 3 introduction to malls -...
TRANSCRIPT
32
CHAPTER 3
INTRODUCTION TO MALLS 3.1 Mall Definition
Malls, Open air centres and hybrid centres are the three main shopping centres. Open air
centres are a row of stores managed as a unit, with parking in front of the stores. The
common areas are not enclosed. A hybrid centre combines two or more shopping centre
types. A mall is defined by ICSC as a shopping centre which is typically enclosed, climate
controlled and lighted, flanked on one or both sides by storefronts and entrances. On-site
parking, either surface or structured is usually provided around the perimeter of the shopping
centre. The definition of a mall and other shopping centres in U. S. is as given in table 3.1. As
the organised retail is a global phenomenon, with adoption of similar practices of
development, design and retail mix, the definition of shopping centres in U. S. has
Table 3.1: Shopping Centre Classification in U.S.
CENTRE CONCEPT AGGREGATE
GLA (Sq. Ft.)
TYPICAL TYPE OF ANCHORS
Super
Regional
Mall
Similar to concept to regional malls, but
offering more variety and assortment
838,981.872
Full-line or junior department store,
mass merchant, discount department
store and/or fashion apparel store
Regional
Mall
General Merchandise or fashion-oriented
offerings. Typically enclosed with
inward facing stores connected by a
common walkway. Parking surrounds
the outside perimeter
481,857.893
Full-line or junior department store,
mass merchant, discount department
store and/or fashion apparel store
(Source: http://www.icsc.org)
Commonalities with those in other countries across the globe (Omar and Baker 2009). The
U. S. definition of shopping malls may be moderated in different countries because of the
difference in consumer behaviour and economic environment in each country. The
comparison of the definitions of malls in some of the Asian countries and their comparison
with those of the U. S. and Australia are given in table 3.2. It can be observed from the table
that the primary trade area of a regional mall. (Super centre) in Malaysia is the area from
which you can reach the mall in 30 minutes, where as in Australia the distance is 20 k. m. and
33
Table 3.2: Definition of malls in Asia compared to the malls in U. S. and Australia
(Source: Omar & Baker, First Steps toward a shopping centre typology for Southeast Asia, Asia – Pacific and beyond, 2009)
in U. S. the distance is around 20-25 miles. Cineplex is part of a mall in Thailand where as in
Australia and U. S. there is no Cineplex within the mall. The size of a shopping centre in
India can be much smaller than the ones in North America or Europe. Here, any shopping
centre of 80,000 square feet is considered a mall. A centre of such small size is called as a
mini mall in the west [77]. The reasons for the smaller sized malls in India are because of the
small size of the Anchor store in India and also the smaller number of stores in the malls. The
30 largest malls in the world have an average of 350 stores. In India there are around 202
stores [86]. Table 1 and table 2 gives the details of the biggest malls in India and the globe
respectively
34
Table 3.3: The biggest 5 global malls
NAME COUNTRY GLA (sq. ft) PARKING UNITS*
The Dubai Mall UAE 37,70,000 14,000 1,200
West Edmonton Mall Canada 34,00,000 20,000 900
Berjaya Time Square Malaysia 34,00,000 — 1,000
Mall of America US 30,74,000 12,550 520
SM City North EDSA Philippines 30,00,000 4,000+ 800
Source: http://businesstoday.intoday.in
Table 3.4: The biggest 5 Indian malls
Mantri Square Bangalore 9,19,516 2,080 202
Ambience Mall Gurgaon 8,73,000 2,500 165
Great India Palace Noida 8,50,000 5,500 190
R. City Mall Mumbai 6,57,000 3,000 140
High Street Phoenix Mumbai 6,50,000 3,939 165
Source: http://businesstoday.intoday.in
Figure 3.1: Mantri Square, the largest mall in India
Source: http://www.indiweb.in
35
Figure 3.2: DLF Emporia, the Luxury Mall of India
Source: http://theglamgang.com
3.2 Growth of Malls
In contrast to the west, malls in India house food courts and multi screen film theatres. The
typical anchor stores are the hypermarkets or cinema theatres. Most of the stores are of
apparel, footwear, music, accessories, electronics, watches, jewellery, food and grocery, gifts
and mobile phones. The food courts usually have a combination of North Indian food, South
India food, Chinese and Fast Food. If we take the case of Sahara Mall, Gurgaon, the anchor
tenant is the hypermarket, Big Bazaar. The remaining tenants are related to mostly apparel
(Pantaloons, Raymonds, Charlie Outlaw, Lakshita International, Catmoss, and Giny & John).
RPG Cellcom cells mobile phones and L.G. Electronics sells consumer electronics. Betini
and Smith sell footwear, Archie’s sells gifts, Diamond Plus, Aswera, Jewels India deal with
jewellery, Haldiram has a combination of North Indian Food like Chola Batura, South India
food like Dosa and Idli and many other dishes related to Chinese food, Indian Chat food,
sweets, cakes and ice creams. Salsaa and Salsaa offer Mexican Food. PVR Cinemas caters to
the entertainment part with its movies.
The complete tenant mix of Sahara Mall is given in the table 3.5.
36
Table 3.5: Tenant Mix of Sahara Mall, Gurgaon
TENANT MIX OF SAHARA MALL, GURGAON
ANCHOR TENANT GIFTS & GREETINGS
Big Bazaar Archies Gallery
APPAREL INTERIOR DECORATION
Arti Enterprises Furniture Bazaar
Charlie Outlaw Mat Basics
Hall Mark Shayan Home Furnishing
Indian Terrain Varun
Raymond Shop JEWELLERY
Arti Enterprises Aswera
Kadambari Garments Diamond Plus
Shringi’s Jewel Palace
Divine Collections OPTICALS
Lakshita International Himalaya Opticlas
Riwaaz STATIONARY
Catmoss Write Sire
Giny Jony WATCHES
Lilliputs Kids Wear Big – C
MOBILES FOOD CENTRES
RPG Cellucom Haldirams
L G Shoppe Punjabi Tadka
FOOTWEAR Amorettios
Gurusimrat Retail Salsa Salsaa
Bertini Mymah Internet
Bliss Coffee Day
Easteam REAL ESTATE
Liberty Shoes S M Associates
Lotus Feet BEAUTY PARLOURS
CINEMAS Eleganza
PVR Cinemas Finesse Beauty Salon
The word mall was associated with the British game of pall-mall since 1598. The game which
had a mix of croquet and golf was played on fairway green. A street in London was name
Pall Mall in 1656. Later a promenade in London’s St. James Park was called as a mall. In
1737 a walkway bordered by trees came to be known as a mall. The current day mall’s
definition closely resembles the 1954 definition of a mall which was an enclosed large
shopping centre managed by a single company which housed a range of retail shops and
services, surrounded by a parking area and situated in a suburban centre . Using internet and
World Wide Web for marketing and selling merchandise, Internet malls came up in 1995.
37
Table 3.6: Evolution of the usage of the word mall
DEFINITION OF MALLS
• Game of pall-mall (1598)
• Pall Mall – a London street(1656)
• The Mall –A promenade in London’s St. James Park
• A walkway bordered by trees(1737)
• A grassy area between roadways
• Open grassy area surrounded by academic buildings.
• Open area between public shops in an open-air shopping district
• Shopping centre, a linear arrangement of connected stores fronted by a
walkway & parking area
• An enclosed shopping centre (1954), a large structure managed by a single
company housing a variety of retail shops and services, surrounded by a
parking area and situated in a suburban setting.
• Specialty malls – festival market places, lifestyle malls, lifestyle centers
• Internet mall (1995) a world wide web or on-line service that advertises goods
and services for sale. Source: International Council of Shopping Centers
Some of the amazing shopping malls in the world are presented below;
Figure 3.3: Mall of America, USA
http://www.britannica.com
38
Mall of America, Bloomington, Minnesota, has a huge theme park and a wedding
chapel, where more than 5,000 couples have been married since its opening.
Figure 3.4: Mall of Emirates, Dubai
Source: http://www.businessinsider.com
Mall of Emirates, Dubai has a indoor ski destination in the Middle East, a two-level
Magic Planet, the largest indoor family entertainment centre in the country, a 14-
screen Cinestar Cinemas and the Dubai Community Arts and Theatre with a 500 seat-
theatre and art gallery.
Figure 3.5: West Edmonton Mall
Source: http://www.businessinsider.com
39
West Edmonton Mall (Alberta, Canada) has the biggest wave pool in the world and
features the largest indoor water park.
Figure 3.6: Beijing Mall
Source: http://www.oddee.com
Beijing mall (Beijing) made is among the world's top 10 largest malls. It is also in the
top 10 luxurious malls of Beijing with a gross leasable area of 3.4 million sq ft.
Figure 3.7: The Grand Canal Shoppes (Las Vegas, USA)
Source: http://www.oddee.com
40
The Grand Canal Shoppes (Las Vegas, USA) is a 500,000 sq ft upscale shopping mall located
next to The Venetian Hotel & Casino and the Palazzo in Las Vegas, Nevada. Gondolas take
visitors around the mall on the indoor canals. The mall is anchored by a flagship high-fashion
Barneys New York store.
The concept of a covered shopping centre existed centuries earlier. Isfahan’s Grand Bazaar
which started in 10th century A. D., Tehran’s Grand Bazaar and Grand Bazaar of Istanbul
built in 15th century all had covered shopping centres. In England, the Oxford covered market
started in 1774. Many malls have come up in Europe in the 19th and 20th century. The culture
of suburban malls started in U.S. in the mid-20th century.
Figure 3.8: Completely covered Isfahan’s Grand Bazaar, Iran
Source: http://isfahan.ir
Figure 3.9: Map of the Grand Bazaar of Isfahan Source: http://isfahan.ir
41
The 1st regional shopping centre to be called as mall, Northgate Mall, opened in north
Seattle, Washington, USA. It was spread over 800,000 sq. ft. and accommodated stores in a
linear pattern. The first shopping centre with a facility to park automobiles, Country Club
Plaza, in Kansas City, Missouri opened in 1924. Victor Gruen pioneered the concept of the
fully-enclosed and controlled mall. In 1954 he designed Northland, near Detroit, with 110
stores in 1,192,000 sq. ft. on 2 levels, in a cluster arrangement surrounded by parking lot,
resembling the town squares of ancient Greece. Earlier, shopping centres had entrances
facing the parking area. Gruen had the idea of putting the whole complex under one roof,
with air-conditioning for the summer and heat for the winter. This has lead to sweeping
changes in shopping centre design. The concept of multi level shopping. The middle of the
mall had a fishpond, artificial trees, bird cares and a cafe which might have inspired the usage
of Atriums in malls. This gave rise to a revolutionary shopping experience, ambience and
convenience in shopping. This has lead to the development of many new malls in U. S.
Retailers also rushed in to occupy the most profitable spaces in the mall. Leonard L. Farber,
the first chairman of ICSC developed suburban strip centres. In 1963 Stanley H. Durwood
opened multiplex movie theatre in Kansas City. Factory outlet centres came out in 1990s.
Figure 3.10: Victor Gruen, known as Father of Malls Source: http://esotericsurvey.blogspot.in
42
Figure 3.11: North Land Mall, the first shopping centre to be called as a Mall Source: http://www.museumofthecity.org
3.3 Global scenario of Malls
3.3.1 USA
Malls had an iconic status in the U.S. Mostly located in the suburbs; they had robust
infrastructure and promoted weekend trips and drive culture for shopping and leisure. Many
became famous because of size or merchandise or as a place for socialising. At present malls
in USA are into a difficult phase mainly because of the recession. The average vacancy rates
for large malls were the highest since the last ten years in 2011. The vacancy rates of regional
malls were around 9.4 in the third quarter. Unlike the hospitality and office sector which have
recovered, retail continues to struggle. Because of poor customer traffic, major mall based
retail stores are closing down some of their stores which are not doing well. For instance,
Christopher & Banks plan to close 100 stores and GAP plans to close down 189 of their mall
based stores. Mall based departmental stores like Seers and Macy’s are closing down some of
their stores which is again adversely affecting the malls in U.S. Referring to fig. 10., the
vacancy levels have been steadily growing since 2006, when the percentage was 3.2 to 5.8%
in the third quarter 0f 2011. The deliveries have also come down from 22,713,048 sq. ft. in
43
2006 to 900,609 sq. ft. in 2011. Traditional malls like East end mall are fast loosing revenues
because of loosing key tenants. Metcalf South Shopping Centre is languishing as
reconstruction plan as an open air shopping centre failed. The dead malls are expected to go
up by 100 this year. Apart from the loss of key tenants, consumer preference for big-box
stores like Wal-Mart has also added to the decline in malls. Developers are now supporting
big box formats. Only one enclosed mall came up in U. S. since 2006. Earlier dead malls
were restructure like mixed used centres which had offices, apartments and parks. That seems
to be difficult now as lenders don’t find it as a profitable venture. However unlike the mid
priced stores whose middle class customers have come down, luxury and discount based
stores are doing well in U.S. Many expanding concepts also plan to open their stores in the
malls in future.
3.3.2 Europe
Shopping centres in Europe have been growing steadily since 1980 with the highest growth
recorded in the year 2008. Referring to fig. 11, since 2008 there has been a decline in the
growth of shopping centres in Europe.
Table 3.8: Malls Scenario in U.S.
Source: U. S. National Retail Report, 2012
44
Figure 3.12: European Shopping Centre Growth
Source: European Shopping Centre Development Report, 2011
2 .1 million sq. m. shopping space was added in the first half of 2011 compared to 2.2 million
sq. m. in 2011. 58% of the new space is accounted by Central and Eastern Europe mainly
because of high levels of growth in Russia, Turkey and Poland. Russia accounts for a fifth of
new space opened. Three malls including the large AFIMALL opened in Moscow which has
a share of 36% of the new GLA. In Western Europe, 8 new shopping centres opened in Italy.
Italy and Spain have the largest share of the new space.
45
Comparing the data in fig. 12 and fig. 13, it can be seen that Russia, Turkey and Poland have
recorded the largest addition of new retail space. From fig. 12, it can be observed that Malta,
Austria, Bosnia Herzegovina, Bulgaria, Czech Republic, Denmark, Estonia, Hungary,
Lithuania and Luxembourg recorded no addition to the mall space last year. In some
countries however, many new mall projects are delayed and likely to be remain incomplete
for more time Consumer confidence and retailer confidence has gone down because of recent
fiscal measures.
Figure 3.13: County wise Total Shopping Centre GLA in Europe Source:EuropeanShoppingCentreDevelopmentReport,2011
46
Figure 3.14: Country wise New Shopping Centre GLA in Europe
Source:EuropeanShoppingCentreDevelopmentReport,2011
In U.K. it is observed that large discounters are moving into malls in large numbers. Many
discount and budget brand retailers like Poundland, Peacocks, Card Factory and Greggs are
shifting from high streets to malls, changing the face of British Malls. Mid market brand New
Look has leading number of shopping centres. Up market Costa Coffee is growing.
Consumer buying habits have been changing because of rising petrol prices. Most shoppers
want to shop at nearby places and shop less frequently.
47
Figure 3.15: Budget retailer Poundland, the fastest-growing in U.K. malls.
Source: http://www.guardian.co.uk
3.3.3 Asia
Overall growth in Asia Pacific region is good. South East Asia is the region with high growth
markets. China & India are seen as the biggest opportunities for mall growth. Unlike in the
west, consumer confidence is high in Asia. China and Japan have the largest sales in terms of
volume in Asia, around 44%. Out of the projected 1.3 billion people having disposable
incomes of greater than $ 5,000, nearly 66.5% will be in India and China. While the west is
facing inflation and cost pressures, markets in Asia are expected to continue with their
growth fuelled by domestic and international investments. India, China and Indonesia
continue to grow faster. The reasons for the growth are the rising incomes and higher
consumer confidence. Growing middle class and the youth are contributing to the retail
growth. Retailers of food and grocery, apparel and FMCG continue to expand in Asia. Rental
rates also continue to increase in this region. Referring to fig. 15., rental rates in Beijing are
as high as $ 413 per sq. ft. per year. Several large projects are under construction in Seoul,
Mumbai and Delhi NCR regions. The growth in Hong Kong is due to the rise in vertical
malls. Other regions which are expected to see retail growing are Philippines, Indonesia,
Vietnam and Thailand. Middle East is in the late growth phase. With a small market of 27
million population, it has disproportionately high retail Market of 1.4 billion dollars. The first
mall, Dubai’s Al Ghurair Centre opened in 1980. The malls have high success rate because of
climatic conditions. In the Middle East, Dubai and Abu Dhabi continue to grow. Dubai has
48
Table 3.9: Rental Rates of Malls in Asia
Source: Asia Pacific Retail Report, 2011 by Cushman & Wakefield
become an entry point for international retailers in the region. The country has invested
heavily into modern and large mall some of which have large aquariums and ski slopes.
Though property sector has slowed down because of global recession, tourism and trade
49
continue to support the retail growth. Abu Dhabi which has an undersupply has also come up
with large supply of retail space banking on the domestic demand.
Figure 3.16: Dubai Mall Aquarium Source: www.zamaanonline.com
3.4 Malls Scenario in India
The first mall to come up in India was Spencer Plaza in Chennai in 1991.It was then a seven
floor building with a mix of retail, office space and entertainment. There was no planning as
compared to the present malls. The outside of the mall looked dull; corridors were narrow
and no zoning at all. The second mall came into business in Mumbai. An office building of a
pharmaceutical company was converted into a mall named as Crossroads. It had good footfall
but the retail mix was not perfect. The present owners of the mall, Future Group has changed
its name to SOBO Central and converted it into a seamless mall. Ansal Plaza, New Delhi
started in 1988 as a joint venture between government corporation, HUDCO and Indian real
estate developer, Ansal Group. There were only three malls till 1998. The real boom in malls
came after 2003. The mall has a unique architecture and is doing well despite competition
from newly developed malls in the area.
50
Figure 3.17: Spencer Plaza, The first mall of India
Source: www.chennaispider.com
Figure 3.18: Crossroads, the first mall in Mumbai and second in India
Source: www.malls.biz15.co.in
51
Going by the definition of the malls as enclosed shopping centres, some of the old markets in
India can also be considered as malls. Crawford Market of Mumbai, which started in 1869,
New Market of Kolkata which existed since 1874 and Connaught Place at Delhi which
Figure 3.19: Ansal Plaza, the first mall in Delhi NCR
Source: www.getitmalls.com
Figure 3.20: Crawford Market in Mumbai
Source: www.outlookindia.com
opened in 1931 with its arcades can be considered as pioneer malls. To the list one can add,
Palika Bazaar at Delhi, Mini malls of 1980’s in Bangalore. However, if one were to define
shopping centres or malls as enclosed shopping spaces, then Mumbai's Crawford Market
52
(opened in 1869) and Kolkata's New Market (1874) surely have the pride of place as the
pioneering malls in India. Delhi's Connaught Place (opened in 1931) should also definitely be
considered, with its covered arcades.
Figure 3.21: New Market, Kolkata
Source: www.flickriver.com
Figure 3.22: Connaught Place, New Delhi
Source: www.delhitravel.org
More recently, New Delhi's partially underground Palika Bazaar, the mini-malls of the late
1980s on Bangalore's Brigade Road, and shopping centers built by private developers in
53
Ahmadabad and other cities have all had a role to play in the evolution of organized retail
spaces in the country. So, it would be accurate to view the most recent offspring of a long
lineage or organized shopping centers.
In the west, malls gave the comfort of convenience and choice. Very soon they became an
integral part of the consumer lifestyle in Europe and the United States. India did not have
malls in earlier days because of conservative shopping habits. However after liberalisation,
the trend has changed.
Before global recession there were plans afoot to develop around 1100 malls by 2008-2009.
However only 100 malls have come up during this time. The market was down in 2009,
retailers had to depend on offering discounts and special offers to survive. This has lead to
weak bargaining power of mall developers. Economic slowdown since 2008 has dampened
the mall boom. The earlier aggressiveness has been replaced by caution and consolidation by
mall developers. There has been a correction in the rentals. Many new models of rent and
lease have come up. Zero rental schemes, revenue sharing models, a combination of both
have come into practice.
North and South India lead in terms of addition of mall space and number of malls. In North
Delhi NCR has seen growth in malls. In south Chennai and Bangalore lead the race. In the
west, Mumbai , Thane and Pune dominate the retail scenario. In east highest development is
seen in Kolkata.
3.5 Scenario of Delhi –NCR
Delhi –NCR Region has the largest number of operational malls in the country as per 2010
figures. Because of space constraints in Delhi, surrounding NCR regions of Gurgaon, Noida,
Ghaziabad and Faridabad have seen a large of malls coming up. The latest trend is the
development of specialty malls like Gold Souk in this region. The region has around 60
operational malls. North zone is the leading contributor on new retail space added and Delhi
NCR contributes a large percentage of the new space. The region has high number of high
income segment of young people who support the mall culture. It has the highest retail
spending in the entire north India.
54
Delhi NCR has pioneered the new formats of malls – malls combined with multiplexes and
malls combined with hotels and office spaces. Ambience mall and Select City Walk have
come up with a combination of retail and 5 star hotels. Metro walk at Rohini and Great India
Place, Noida have combined entertainment parks with retail shops. Ambience mall and Great
India Place have come with large format of more than 1 million sq. ft. The region has also
seen speciality malls which are differentiated on the basis of tenant mix. Delhi also has the
only ‘luxury mall”, of India, DLF Emporio. Malls shopping have been greatly increasing
because of Delhi Metro which now connects Gurgaon and Noida.
3.5.1 Delhi
Delhi has the largest share of about 36% in the total mall space .The NCR market is expected
to witness a fresh supply of about 16.14mn.sq.ft. of mall space by the end of 2012. Table 3.10: Mall Scenario Delhi & Ghaziabad
Source: India Organised Retail Market Report, 2010 by Knight Frank
Delhi continues to dominate the NCR's retail market, having the largest share in the total
upcoming supply by the end of the year 2012.With a share of about 33%, Delhi is expected to
witness a fresh supply of around 5.39 million .sq. ft. by the end of 2012.
55
3.5.2 Gurgaon
Gurgaon has a total share of about 29% in the Delhi NCR mall space. The DLF City Centre
Mall and The MGF Metropolitan Mall located on MG Road were the first malls in Gurgaon.
Currently, Ambience Mall located on NH 8 is the biggest mall here with more than 1.5
Figure 3.23: Amusement with Shopping at Metro Wall at Delhi
Source: phototravelings.blogspot.com
mn.sq.ft. of built up area. The Gold Souk Mall in, Gurgaon is a specialty mall housing a
number of jewellery stores as major tenants. The malls regions of Gurgaon are MG Road and
NH-8 New areas witnessing mall development are Golf Course Road, Extended Golf Course
Road and Sohna Road. By the end of 2012, Gurgaon is expected to witness a fresh supply of
about 3.22 mn.sq.ft. of retail space, which is around 20% of the total expected supply in the
NCR. Senior Mall, MGF Metropolis, R-Mall and Metro World Mall are pure retail formats
which are coming up. The mixed used centres which are coming up are MGF's Emerald
Plaza, Palm Square, Digital Greens, JMD Group's Corporate Suites and Space Group's
Palazzo.
56
Table 3.11: Mall Scenario at Gurgaon & Faridabad
Source: India Organised Retail Market Report, 2010 by Knight Frank
Figure 3.24: Ice Skating Rink at Ambience Mall, Gurgaon, largest mall of Delhi NCR
Source: meowlife.blogspot.com
57
3.5.3 Noida
Noida & Greater Noida contributes 15% to the total mall space of Delhi NCR. Prominent
locations for malls are Sector 18, 38A, 25A in Noida and Pari Chowk in Greater Noida. The
first mall to come up in the region is Centre Stage Mall in 2002. Great India Place came up in
2007. Noida is expected to be the second largest contributor to the upcoming mall supply. Table 3.12: Mall Scenario at Noida & Greater Noida
Source: India Organised Retail Market Report, 2010 by Knight Frank
A major part of it is going to come up in Greater Noida. Large malls Grand Venezia Mall and
Omaxe Connaught Place are to be completed by 2012. Other malls coming up in the region
are Sonic Mall, MSX Mall and Crystal Mall. DLF Town Square Mall, a commercial project
in Noida Sector 18 is in the planning phase.
Figure 3.25: Great India Place, the most popular mall at Noida
Source: phototravelings.blogspot.com
58
3.5.4 Ghaziabad
Ghaziabad has the advantage of a large catchment area because of its border with heavily
populated East Delhi on side and Noida on the other side. The region’s share in the total NCR
market mall space is 12%. Shipra Mall, Pacific Mall, East Delhi Mall (EDM), Mahagun
Metro Mall, Ansal Plaza and MMX malls are the prominent malls in the region. 2.63mn.sq.ft
of new retail space is expected to be added to the region by 2012. The new malls Angel Mega
Mall, Eros Market Place, D-Mall, Express Mall and Euro Mall are expected to be completed
by 2012.
Figure 3.26: Shipra Mall at Ghaziabad with a unique Roman Architecture
Source: www.skyscrapercity.com
3.5.5 Faridabad
Out of the total operational malls space in Delhi NCR, Faridabad has a share of 8%. Crown
Plaza Mall is one of the oldest malls in the region. During the last couple of years many new
malls like Parsvnath Mall Manhattan, Eldeco Station One and Senior Destination Point have
becoming operational. Prominent malls to come by 2012 are up Metropolitan, Achievers
Centre Point ad Ozone central. Due to the impact of recession, upcoming project in sector 32,
MB Mall has been converted to office cum hotel space. Many other developers have shelved
their projects. By 2012, the region is expected to get new supply of 0.6 million sq. ft. Global
recession has affected the retail in the Delhi NCR region since 2008. The rents have come
down in 2009 by 30 to 40%. Retail transactions have come down by 70-75 %. There has been
59
Figure 3.27: Crown Interiorz Mall, Faridabad
Source: www.getitmalls.com
a slight increase in the rents in 2010 by 10-15%. However the retailers have gained more
bargaining power. Minimum guarantees and revenue sharing routes have become prevalent.
It is expected that in future revenue sharing models will become more common that the rental
format. Since 2009, rentals have stabilised leading to increasing in leasing activities in the
region. Construction of malls has picked up. By 2012 Delhi NCR market is going to be
largest supplier of retail space, 33% of the national supply.