India cannot sustain luxury-only malls
In a recent interview to The Economic Times, Bappaditya Basu, SVP at Jones Lang Lasalle India spoke about luxury retail development in India: “Only Mumbai, Bangalore, Delhi and Pune understand luxury. There are no other cities that can absorb a pure luxury mall in the absence of a critical mass for retailers to survive. Big mall development cannot be sustained on pure luxury”, adding that “India is replicating the mixed use model from Southeast Asian countries as the luxury market is still small”
Developers in India are setting aside up to 40 percent of mall space for luxury brands, following the success of mixed use retail models used in Southeast Asian countries. Some of the developers setting up luxury retail malls with 20 percent to 40 percent of mall space include: Xander Group-promoted Virtuous Retail, L&T Realty, Panchshil Reality, Ansal API and KKA Buildtech. The cities that have been ear marked for such developments include Surat, Chandigarh, Ludhiana, Amritsar and Pune.