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Delhi ranked 21st in shopping centre development

Delhi-NCR ranks 21st in the global list of cities with maximum shopping centre space under construction in 2014, according to property consultant CBRE.

India continues to see a wave of new shopping mall development despite some developers pushing back completion dates due to financing issues, CBRE said in a statement.

"New Delhi is ranked 21, Hyderabad 23, and Bangalore 31, among global cities with maximum shopping centre space under construction in 2014," the consultant said, quoting from CBRE Research's latest report 'Global Viewpoint'.

It said 39 million square metres of shopping space is under construction across the world's major cities, and out of that, India accounts for nearly 1.5 million square metres.

Around 5,00,000 square metres of new retail space is under construction in New Delhi. The largest two projects - DLF Mall of India (204,385 sq. metre) and Logix City Centre Mall (1,11,483 sq. metre) - are both located in Noida.

Among tier-II cities, Hyderabad is the most active market with a current supply pipeline (4,83,000 sq. metre), which is three times greater than its existing stock.

Chennai was ranked 15th in the global list of most active shopping centre development markets in 2013.

"Globally, a total of 39 million sq meter of shopping centre space is currently under construction across the world's major cities, representing a three million sq metre increase from 2013," CBRE said.

"Most of this development activity for shopping centre space around the world is focused in China."

According to the report, more than half of the shopping centre space under construction in the 180 countries surveyed is taking place within China's borders.

Shanghai takes the first position with 3.3 million sq. metres of space under construction, which is more than the combined space under construction in the total 86 European cities, excluding those in Russia and Turkey.

Just behind Shanghai is Chengdu with 3.2 million sq. metres, followed by Shenzhen and Tianjin with 2.7 million sq. metres and 2.5 million sq. metres under construction, respectively.

"Strong economic growth in many Asian markets has been attracting an increasing number of cross-border retailers. Even though China remains by far the most active market for shopping centre development, the tier I and II cities of India are also among the most active globally," CBRE South Asia CMD Anshuman Magazine said.

"Unfortunately, however, there continues to exist a dearth of quality shopping space in many of our market places. Along with the large-scale urbanisation of our leading cities and a burgeoning middle class population, it is this that has been driving shopping center development forward," he added.

This is the third year that CBRE has measured the level of shopping centre development in the world's 180 major cities.

The survey was based on new centres of over 20,000 sq. metres and excluded retail warehousing and factory outlet centres.