South Delhi has emerged as a micro-market with the highest concentration of malls accounting for 38% of the total retail stock of Delhi, says a report by consultancy CBRE and CII.
The organised retail market of Delhi has gone up to nearly 11.4 million sq ft with about 57 malls, mixed-use prime investment, investment and semi-investment grade malls.
The South Delhi micro-market not only has the highest organised stock, but also the highest percentage of prime investment grade malls (73%), thereby justifying its popularity among retailers and consumers alike.
While other locations in Delhi cater to local catchment needs, malls in South Delhi are frequented by residents of suburban locations of Gurgaon and Noida as well, since these malls serve as lifestyle destinations also, says the report.
Delhi has also emerged as a base for entry and expansion activity of global retailers in the country, with more than 118 brands entering or expanding across the city since 2012. Shopping centres emerge as a clear choice for global players with more than 70% choosing the same for their entry/expansion activities. Most global brands entering the city prefer to locate in a shopping mall and then evaluate options across high streets for expansion activity. This trend is more pronounced across brands in the coffee and restaurant segment.
The share of coffee and restaurants as a segment has been fast rising from less than 30% in 2012 to more than 40% in 2014 and more than 50% in 2015. More than 45 entries and expansions have been witnessed in the city since 2012 including operators such as Wendy's, Starbucks, Burger King, Nandos among others.
While the city has the highest number of shopping developments as compared to any other metropolitan city in the country, almost 49% of organised space in the city constitutes of developments that have adopted strata sold or sale + lease model. More than 5.6 million sq. ft. of retail space in Delhi is strata sold which has impacted the tenant profile and success of a shopping mall as a whole.