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Mall stock of 39 million sq ft is eligible for REIT investment in India, says Cushman & Wakefield.
In its report released at RICS Real Estate Conference 2016 – “Commercial Real Estate: Corporate Catalyst” Cushman & Wakefield said the top eight cities have REIT-eligible mall supply of approximately 39 million square feet, with Bengaluru, Delhi-NCR and Mumbai together accounting for about 64 per cent of the retail inventory.
Owing to the presence of large mall developers in Delhi-NCR, Mumbai and Bengaluru that operate some of the best malls in India, investors are likely to concentrate their investments in these cities.
Mumbai (11 million square feet) has the highest stock of REIT-able malls i.e. non-strata sold Grade A malls, followed by Delhi NCR (7.4 million square feet) and Bengaluru (6.5 million square feet).
The entry of higher number of foreign brands over the years would likely spur the requirement of quality malls in major cities. Going forward, there is over 25 million square feet of mall space that is currently under construction across the eight cities and is expected to get operational by 2018. These malls would provide investors with an array of investment options in the retail asset class.
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