With popularity of mall culture on the rise, these swanky shopping centres are expected to contribute to more than a third (35 per cent) of the modern retail sales in the next three years, says a report.
"With modern retail regularly occupying about 95 per cent space in malls, its growth has been bolstered and is being led by increased mall development. It is no surprise that the share and contribution of mall sales to modern retail sales will cross 35 per cent by 2016," a study titled 'Malls of India' by Images Research said here today.
Despite growing concerns of a general economic slowdown, the report said average sales are expected to keep increasing.
"The average sales per feet is still expected to keep increasing at an average of 12 per cent and reach Rs 1,475 by 2016. Consequently, around 720 malls with 206 million sq ft gross leasable area and 154 million sq ft retail carpet area will see total sales revenue generated by malls break the Rs 2,32,400-crore-mark by 2016, registering a high 85 per cent occupancy levels," it said.
It noted that the 470 operational malls have an estimated gross leasable area of 128 million sq ft.
"Within the last two years, the malls count has grown by 28 per cent per annum matching the growth rate of modern retail," the report said.
According to the study, as many as 250 upcoming malls are at various stages of development, which are expected to take the gross leasable area to 206 million sqft by 2016.