Vacancy rate in shopping malls is moving upward. Industry experts say that this is because of the indiscriminate launches of new shopping malls.
According to some recent reports, vacancy rates in shopping malls have reached almost 30%. The mall owners are now finding it hard to gain takers for the vacant space.
While vacancy rate in Delhi-NCR is nearly 30%, in Mumbai it is over 25%. Both of them are now witnessing to the increase of vacancy rates.
This is not anything exceptional to these two cities alone. All the cities are witnessing the same. However the vacancy rates are not as high as these cities. This is the only difference.
In Chennai, vacancy rate rose from 10% of 2011 to 20% in 2012. Vacancy rate in cities like Bangalore and Hyderabad fall between 5-10%. It means that these cities also see increasing vacancy rates. What is the cause of this?
According to the industry experts, one of the main factors that result in vacant space is indiscriminate supply of office spaces.
The industry experts point out that the developers remain competitive in delivering shopping malls with latest facilities and amenities. In the opinion of the experts, the builders seldom calculate the demand existing in the area. This creates over-supply of office space.
However they do not discard the problems of lack of planning. For instance, the earlier shopping malls do not have multiplex facility. This is one of the key factors which cause heavy footfall.
Another important thing which attracts larger population is the presence of good food shops. Those shops which lack food shops and restaurants also fail to attract people.