Delhi shopping malls with more space to get a facelift

Most of the shopping malls in Delhi are getting an upgrade and developing extra area to open more stores, availing benefits of the scheme launched by the Delhi Development Authority (DDA).
DDA has come up with a scheme whereby a mall or any other commercial area, having sufficient parking space, can add an extra floor by purchasing extra floor area ratio (FAR) from the authority.

South Delhi’s Select City Walk has started developing about 70,000 sq ft of extra retail area while DLF is in the process of applying for permission to develop 300,000-400,000 sq ft of space as a luxury retail area next to DLF Promenade.

Many other malls in west and east Delhi have also applied for permission, a move which will also give a boost to cinemas since most of them are adding extra floors to open theatres.

“DDA has recently clarified charges to be levied while purchasing extra area. Any district centre having the parking capacity can develop extra area. Many malls have taken this benefit as demand from retailers to take space on lease has increased,” said Harsh Bansal, co-founder, Unity group.

Unity Group has purchased rights to develop extra area at five malls in Dwarka, Pitampura, Rohini, Netaji Subhash Place and Shahdara.

Recently, real estate developer DLF Ltd said that it will invest Rs 200 crore to expand its mall at Vasant Kunj, in the national capital, with a dedicated shopping area for luxury products. This will strengthen DLF’s presence in central and south Delhi with malls in Chanakyapuri, Saket and Vasant Kunj.

The existing DLF mall at Vasant Kunj is spread over 500,000 sq ft with international and domestic luxury brands as tenants.

Additionally, DLF has planned malls in Gurgaon and Goa and high streets in Gurgaon, in addition to retail space in its upcoming residential and commercial development, majority of which will be launched this year.

Increasing footfall following the withdrawal of Covid-19 restrictions is expected to propel the revenue of mall operators well above the pre-pandemic level this financial year, compared with 70% of that mark last fiscal, according to Crisil.