Mumbai, Jan. 5: The area under shopping malls in Calcutta is set to rise to 4.8 million square feet by 2016, a net addition of about a million square feet from 2013, which is equivalent to three South City malls.
Estimated mall area of the city stood at 3.9 million square feet in 2013 and is projected to rise to 4.5 million square feet this calendar year and 4.8 million square feet in 2016, according to a report by Jones Lang LaSalle India.
Calcutta, which has witnessed a steady rise in its mall area over the past few years, is also likely to see changes in their distribution pattern.
While the major concentration of malls is now in the eastern and southern parts of the city, the real estate services firm believes malls will soon come up in areas such as Rash Behari Connector and College Street.
In 2013, around 51 per cent of the mall area in the city were in the eastern zone. This is projected to come down to 43 per cent in 2014. The north will see the maximum increase to 13 per cent from 5 per cent. South Calcutta will occupy around 27 per cent (24 per cent) of the total mall space in the city.
Though Calcutta lags behind cities such as Delhi-NCR, Mumbai, Bangalore, Hyderabad and Pune in terms of new mall area, experts believe it is no different from other frontline cities in terms of trends.
Pankaj Renjhen, managing director – retail services, Jones Lang LaSalle India, told The Telegraph the Quest in Park Circus was one such mall, which houses both luxury and premium brands.
He said about 500,000-700,000 square feet were now largely considered as an efficient size of a mall. Consumers in the cities look for elements such as international fashion shops, a large food & beverage option and a good size multiplex. Initially, large malls in the country had a 3-4 screen multiplex which has now gone up to around seven.
According to the report, in the coming years the average size of malls is likely to increase as developers will focus more on bigger project sizes that allow them to offer various formats and categories under one roof.
The average size of malls is estimated to be around 380,000 square feet in 2014, 470,000 square feet in 2015 and 660,000 square feet in 2017.
The firm said there was an increasing trend among upcoming malls to go for an optimal tenant mix to ensure maximum utilisation of retail space. Retailers, therefore, are concentrating on projects that not only offer a good location, but also a place with a good design, trade and tenant mix.
In the top seven cities, supply of retail space in malls is expected to more than double in 2014 to 11.7 million square feet compared with around 5.2 million square feet last year.
Total shopping mall stock will be 76 million square feet in Bangalore, Chennai, Delhi-NCR, Calcutta, Hyderabad, Mumbai and Pune. Among the seven cities, Delhi-NCR and Mumbai have been leading in terms of having the highest concentration of shopping malls, accounting for 62 per cent of the total stock.