The CBRE report is bullish on the growth of retail sector in Mumbai in the near future
Mumbai witnessed considerable activity in its retail segment in the first half of 2013, with an increase in absorption of retail space across high streets and prominent mall developments.
The city also witnessed supply addition to the tune of 1million sqft with the completion of Viviana Mall in Thane.
Demand for prime retail space remained strong across the high streets of Linking Road, Juhu and Andheri from international and domestic retailers belonging primarily to the F&B and fashion segment. F&B retailers such as Aoi, The Funjabi Tadka, The Big Bang Bar & Café and NomNom opened their first outlets in Bandra. Other locations such as Worli, Powai, Carter Road and Kemps Corner also witnessed space takeup by retailers in the F&B segment such as Burnt Sugar, Theobroma, CaféCoffeeDay, Burgs and Nido.
The emerging micromarkets of Horniman Circle, Kala Ghoda and Prabhadevi also witnessed space takeup from retailers across segments such as Reliance Digital(Electronics),The Lazy Dog (F&B) and ChaoBan(F&B). In the luxury segment, French footwear brand Christian Louboutin opened its second store in the country and its first in Mumbai at Horniman Circle during this period.
Banks were also key occupiers of retail properties across major high street locations, with retail banking branches sized between 1,500-2,500 sqft opening across various locations.
Prime high street locations and Grade A malls are likely to witness steady demand from both domestic and international retailers planning an expansion or entry into the city; thus leading to stability in rental values. While retailer interest in the city will continue to remain strong, retailers are expected to adopt a cautious approach towards expansion and might cut down on their typical format sizes owing to high rental values.
On account of rental decline, mall developments across the Eastern Suburbs have observed increased occupancy levels, however rental values are likely to remain under pressure. Also, leasing activity in upcoming projects is expected to gain traction in South Central Mumbai with the launch of The Plaza, an upcoming mall by Bombay Dyeing Group in Worli. The mall has generated significant interest from leading international luxury brands.