Over 50% of malls in Delhi-NCR, Mumbai, Ahmedabad lying vacant: survey

Over 50% of malls in Delhi-NCR, Mumbai, Ahmedabad lying vacant: surveyMore than half of all malls in Delhi-NCR, Mumbai and Ahmedabad are lying vacant, mainly because of slowdown in the economy and consumer spending, a survey by industry body Assocham said.

With 55 per cent of malls lying vacant, Delhi-NCR topped the list of cities having much of their mall space vacant. Mumbai and Ahmedabad followed with 52 per cent and 51 per cent vacant mall spaces, respectively.

The total rate of vacancy in malls in Chennai, Hyderabad and Bangalore was estimated at 50 per cent, 48 per cent and 45 per cent, respectively.

Overall more than 47 per cent of the total mall space in nine big cities is lying empty. In a bid to allure retailers, numerous developers have even started offering rent-free period of up to six months.

Giving reasons for the massive rate of mall vacancy, the report by the industry body said, "Vacancy levels are due to poor location, poor design and poor parking facilities while some are operating at 60 per cent occupancy."

High vacancy levels in malls situated in the outskirts of the Delhi-NCR and other cities have now forced developers to greet companies instead of retailers.

Delhi-NCR also topped the list in terms of sharpest decline in rental values of malls, followed by Mumbai, Ahmedabad, Chennai, Hyderabad, Bangalore and Kolkata.