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Bangalore witnessed no new mall supply during first half (H1) of 2014.
“This has been attributed primarily to the delay in approvals, which led to the deferment of upcoming supply,” said Cushman & Wakefield in its latest retail reports.
Meanwhile, the city’s mall vacancy level registered a dip of 0.4 percentage point and was noted at 7.1 per cent towards the end of Q2 2014 due to the absence of new mall supply and moderate demand from apparels, F&B, footwear and electronics retailers.
Although most locations in main streets and mall micro markets recorded stable rental trend this quarter, select main streets and mall micro-markets registered a drop in rentals.
Whilst Cunningham Road and Mysore Road mall micro markets witnessed a decline of 10-13 per cent in rentals in the wake of weak trading activity; Bannerghatta Road mall micro market recorded a drop of 3 per cent in order to keep rentals competitive and attract newer brands.
Main streets of Brigade Road and Vittal Mallya Road observed a drop of 3-4 per cent in rentals due to limited availability of options with optimum sized floor plates. Going forward, Cunningham Road and Mysore Road mall micro markets may experience further downward pressure on rentals.
On the other hand, established main streets such as Indiranagar 100 Feet Road, New BEL Road, Kamanahalli Road and Koramangala 80 Feet Road may witness an upward rental bias owing to healthy enquiries from apparels, F&B, electronics and jewellery brands.
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