Mumbai Metroploitan Region will get new mall space of around 13.6 million sq ft by 2022.

By Abhay Shah, Realty Quarter

New mall space is expected to be built in the Mumbai Metropolitan Region (MMR) of about 13.6 million square feet by 2022. Mumbai is predicted to account for a massive 82% stake, followed by 17% in Navi Mumbai, according to the Anarock Retail report.

Andheri, Bandra, Worli and Borivali in Mumbai are among the best organized retail locations. Mall sizes of 1 lakh sq ft to 6 lakh sq ft are considered to be small in major micro markets. Ghansoli and Jui Nagar are the prominent zones in Navi Mumbai. The next retail option which will be coming would have malls of 5 lakh sq ft to 10 lakh sq ft.

MMR has an average retail rate at Rs 140 per sq ft at the moment. In 2018, the level of Mall vacancies remained at 16% compared with 12.60% in 2017. In the area, a large number of new suppliers are emerging despite the increase in the vacancy.

It is interesting to note that the levels of vacancies in MMR are lower than in the NCR, where average vacancies, were 18.2% in 2018 and the average rent was Rs 137 per sq ft.

MMR is also ahead of NCR, as regards in new mall supply with the latter probably seeing the new introduction of about 7 million sq ft space by 2022 – almost half of the MMR’s total upcoming supply – the study indicates.

While in Mumbai, there are some of the leading high streets markets in the country, retailers are challenged with steep monthly rentals. The average monthly rentals are significantly greater in key high street markets compared to Malls, ranging from Rs 320 per sq ft per month to Rs 480 sq ft per month.

At such rentals, Mumbai’s high-end high streets are an important issue for business sustainability even for prominent brands – many remain because of their high-value customers. A range of approvals from the multiple government authorities must also be granted to high street retailers to establish shops. “However, majority of malls, have the necessary approvals and retailers can begin their business instantly,” states Anuj Kejriwal, MD and CEO of Anarock Retail.