Malls in India are fast rising in prominence as the destination of premium products of famous international brands. The seven large cities - NCR of Delhi, Mumbai, Bangalore, Kolkata, Chennai, Hyderabad and Pune are the forerunners of the mall revolution in the country and has certainly caught the attention of the NRI diaspora, for their ingenuity and standards.

Out of a total 361 expected mall projects in the country, a formidable number are in the top seven cities while the rest spill over to smaller towns like Chandigarh, Jaipur, Lucknow and Indore. To NRIs and Indians abroad as well as a new class of consumers from the booming service sector which endorses NRI ideas of high disposable income and spending, the stupendous growth of the mall culture in the country is inspiring.

This trend has set off opportunities for real estate developers for creating malls in all the new townships that are being developed today. Going by the remarkable scale of NRI Investment in India, real estate developers are including elements that are relatable to the expatriate population, Indians overseas and NRIs moving to India.

Real estate developers such as DLF Universal, Suncity, Marg Constructions, Omaxe, the Aerens Group and Ansal have been proactive in adopting a 360 degree approach while designing their upcoming shopping spaces. Many of the new properties will be put on lease in a few months.

A bulk of the proposed mall developments in the city suburbs are being planned as mixed use developments that offer shopping, entertainment, commercial, hotel and amusement parks.

'Market Cities'

The 'market cities' have been conceived and planned as self-sustainable ecosystems which will seek to make the most of consumer synergies arising out of the strategic placement of entertainment spaces, multiplexes, star hotels, apartment clusters and shopping spaces.

The market cities are currently under development in Mumbai, Chennai, Bangalore, Pune, Secunderabad and Hyderabad but expected to be fully operational by 2010.

Cyberabad Market City, located at Hi-Tech City in Hyderabad, to be developed in a built-up area of 50 lakh square feet is set to start operations in December 2010.

The high point of the hypermarkets will be space devoted to home accessories and food within the shopping space. Multiplexes will cover 5-10 per cent of the total floor space.

Recent Developments:

Research reports of real estate companies indicate a convincing estimate of over 100 malls and shopping arcades covering approximately 25 million sq ft built up area in NCR by 2009.

Gurgaon is a good example of this where the malls have taken the city by storm. MG (Mehrauli Gurgaon) Road has approximately 10 mall developments - either planned or operational.

• Future Group-promoted Kshitij Venture Capital Fund (KVCF) is a Rs 350-crore real estate asset management fund for retail-focused realty development business in the tier II cities and mini metros. The Group has materialized its model in the form of its first two malls at Ahmedabad and Vadodara to be launched in January next year.
• Kochi which was a subdued retail market may witness a dramatic leap in the consumer footfall when a 4.22 lakh square feet mall becomes operational in that city in early 2009. This may also be replicated in Indore, Lucknow, Mysore, Jaipur and Kolkata with KVCF's realty success. KVCF has committed a Rs 350-crore corpus towards this end.
• Future Capital Holdings, the financial arm of the Future Group, has 18 properties under development out of which seven will be devoted to 'market cities', comprising hypermarkets, multiplexes and residential complexes.
• Horizon International Fund is investing heavily in market cities, developing areas of 5.38 lakh sq ft and above and has committed nearly $230 million (Rs 940 crore) so far.

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