Mall of India put on hold as retail rentals fall
One of the most high profile malls in India, Mall of India, coming up in Gurgaon has been put on hold.
Though its developer, DLF, officially denied to the press such a move, a visit to the site threw up a different picture.
The mall was to be built on 4.5 million sq ft space. It was scheduled to be launched in end 2010. It is now likely to be completed by mid-2011.
The prime reason for this being that for the last couple of months, retail rentals have been continuously falling in Gurgaon. The liquidity crunch is another reason why the development has come to a halt.
Announcing the September quarter result, the vice-chairman of DLF, Rajiv Singh had said the company will “in the short term reduce capital intensity of the business model”.
He had said the company will shift focus from capital-intensive projects such as malls to mid-income homes and offices, where revenue realisation is faster.