Many malls of the country are deserted
It used to be common to plan shopping and dinner with the family in glittering malls as soon as the weekend was over, but today the picture of the country’s retail sector is changing rapidly. The mall culture which once enhanced the beauty of Indian markets, today the same malls are fighting for their existence. A recent report by Knight Frank has shockingly revealed that every fifth mall in the country is either closed or is on the verge of closure. Abandoned corridors and empty shops are now becoming the new identity of these shopping complexes.
Delhi’s most famous Ansal Plaza immersed in silence
To understand this changing picture, there is hardly any better example than ‘Ansal Plaza’ of Delhi. There was a time when it was considered the first and most grand shopping complex of Delhi-NCR. There was no space to set foot here and the atmosphere was always buzzing. Countless people have memories associated with this place. But today one becomes dejected after seeing the view here. Except for a few food outlets, there is complete silence here. Business activity has remained negligible. This is not the case of just one mall, rather the same story is being repeated in many big cities of the country.
Why are 20 percent of buildings turning into ‘ghost malls’?
Property consultancy firm ‘Knight Frank’ conducted an in-depth survey of 365 malls in 32 big cities of the country. The results show that 75 of these malls, i.e. about 20 percent, have now become ‘ghost malls’. Ghost mall is that category of real estate where more than 40 percent of the space is lying vacant, but according to the report, 80 percent of the shops in these 75 malls are vacant.
The biggest reason for this is considered to be poor planning and designing. People’s experience and preferences regarding shopping have changed with time, but these old malls could not update themselves accordingly. Due to lack of maintenance, their infrastructure is becoming dilapidated day by day, due to which customers have started shying away from coming here.
The situation is worse in metro cities, small cities win
Knight Frank’s report ‘Think India Think Retail 2025’ brings out another interesting fact. Contrary to popular belief, the most deserted malls are not in tier-2 cities, but in major metros. Tough competition and changing lifestyle in big cities have broken the back of these old malls. On the other hand, the occupancy level i.e. filling of shops in Tier-2 cities is still in better condition, because the mall culture still remains the center of attraction for the people there.
Infrastructure worth billions useless, still hope remains
A huge area of about 1.55 crore square feet is lying unused in these closed or deserted malls. This is not only a waste of real estate but also an economic loss. However, experts believe that all is not lost. If these properties are properly re-planned and renovated, they can return to their old glory. The report estimates that if these places are used properly, additional income of about Rs 350 crore can be earned annually.
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