Upcoming Projects 2006
India's fast emergence as the economic hub has placed it on the world map as one of the favourite destinations for the entrants from all over the world. This has resulted into enormous developments in the commercial real estate. For instance the steep rise in the commercial property rates led Mumbai being rated as seventh and New Delhi as 11th in the list of most expensive office space in Asia.
Keeping in pace with the intense competition, the builders are trying out more inventive methods to be different and customized. For instance specialised malls have become the demand of the day. Gurgaon will soon have an auto mall catering to automobiles only. Gurgaon will also soon host a wedding mall by Omaxe with a huge banquet hall.
The malls have emerged as a good option for investment giving fixed and sure returns on the money invested. The space bought can thus be given on lease for three to nine years to the brands interested to set up an outlet in these malls. Buying space in a high quality development and leasing it to a good brand means locking returns for a fixed period of time. The lease agreements usually stipulate a 15-20% escalation in rental every three years, increasing the yield on invested money.
For brand building and positioning, malls are now coming up with 5 star hotels and service apartments providing conference halls, swimming pools, banquet halls and multiplexes all at one place under one roof, solving both the purposes- entertainment and work as well as catering to the increasing growth in the average room rates and room occupancy rate. The Commonwealth Games adding to this growth and demand.
The trend of developing large format malls (over three lakh sq ft) is fast catching up with new mall developers. Noida, Greater Noida and Ghaziabad are the emerging markets for large format retail development given the reasonable real estate costs, land availability and low cost labour in these areas. Gurgaon boasting around 58 recognizable malls other than many small ones is all set to get the biggest mall of the world with an average size of 2.5 lakh sq. ft. It is being developed by DLF Universal and to be known as the Mall of India. Some of the other projects upcoming in the NCR region are i Mall in Kessel i Valley; Greater Noida, Park Plaza by Omaxe in Gaziabad, Logix Cyber Park in Noida.
With the burgeoning Indian retail industry now placed at $320 billion and expected to cross $600 billion by 2010 not only the domestic entrepreneurs like Bharti Group, Reliance Industries Ltd and Tata Group are planning to foray into the retail segment but also the foreign players like Wal- Mart, Liberty International, Carrefour, Tesco and Casino are eager to have a share in this untapped market. This would surely result in increased demand for commercial real estate.