Friday, November 4, 2011

MYSORE – RETAIL REAL ESTATE REPORT


India ranks first in a Global Retail Development Index of 30 developing countries in 2006, drawn up by global management consulting firm, AT Kearney. The firm expects the total Indian retail market to grow at a compounded rate of 30 per cent over the next five years. In another recent report of the future of retail industry by Assocham (Associated Chambers of Commerce and Industry of India), a three-fold increase in the growth of organized retailing in the country is estimated by 2011. Fast changing trends and global predictions herald a new and promising future for Indian retail. Designating 

India as one of the most sought-after retail destinations in the world, in the coming decade. With global trends affecting urban markets all around the country, many metropolitan cities have undergone significant changes in their retail landscape. 

Mysore on its way to become the Next IT hub in the state has attracted both notational and international players to come up with their retail shops in the city. The boom in retail sector in India has provided exponential growth opportunities to investors. Mysore as a tier II city for IT & ITES sector has shown a healthy trend in retailing. Many big players such as Trinethras (FAB city), Nilgiris, etc have already established their name in the city many other players such as Reliance, have announced their retail format in Mysore.

MAJOR RETAIL MARKETS OF MYSORE

• Devrajaurs road
Devraja urs Road connects Dhanvantri Road and the Chamarajas Road. This road has developed as the main commercial nerve of the city with all major National and International brands in terms of garments and jewellery present on this road. It also houses retail shops selling all kind of goods such as textiles, toys, home furnishing, handicrafts, decorative items etc.This road in houses a mix of western and Indian Traditional retail shops .At present all the major brands like Grasim, Adidas, Titan, Woodlands, Bata, Pantaloon, Bhima, Café Coffee Day have made their presence in the Devraja urs road. 

• Dhanvantri Raod
The retail maket in this road is one of the oldest markets of the Mysore city. It has all the traditional shops of
Silk Sarees, agarbattis, utensils etc.

• Sayaji Road
Retail-commercial destination in the city is dominated by local retailers & brands. Cauvery Handicrafts Emporium on this road is the major tourist attraction on this road.


• Ashoka Road  
Connecting Sawdy road and finally leading to New Bangalore Mysore Road in the North and Irwin Road in 
the South. Most of the hard ware retail commercial market has come up along this road.

• Temple Road  
Temple road mainly connects the Hunsur Road with the KRS road which leads to the famous Brindavan Gardens .This 24 m wide road is up coming commercial retail street in the Mysore city. Housing major brands like Pizza Hut, Dominoes, Vasu Aggarbattis etc .Commercial developments like Shwetha complex have come up along this road.

• Kalidasa Road  
This is one of the upcoming retail markets of the city in the newly developed Jayalaxmipuram.The  development on this road has come due to the congestion in the city core area. One of the major attractions 
on this road will be the upcoming Brigade Retail Point.

DEMAND AND SUPPLY 
Last 2 – 3 years saw huge infusion of retail space with most local and national retailers making it big in Mysore Market. Despite all the busy commercial activities in the city, the concept of large shopping malls is yet to take off in Mysore in a significant way. . By 2008, the city is expected to have 4 malls covering a builtup area of 5 lakh sq ft. 
Looking at the market potential, many retailers are planning to open their outlets in Mysore. These developments are envisaged to change the market trends in Mysore. In terms of the retail formats, right now 
Mysore city is familiar with FAB city Mall, but other major players like Reliance, Pantaloons are in pipeline


RETAIL MARKET PRICE

Retail space are available in the city core with a range of 100-500 sqft ,which do not suffice the requirements of the big brands and as a result are lying vacant and unutilized. The demand of retail spaces in core has succeeded the supply volumes, thus propelling the investors to move to city suburbs, where many retails spaces are already identified but not occupied. At present the supply rate for the retail space has exceeded the demand rate. Most of the developers of the up coming malls are targeting the branded retailers for its occupancy.



PROMINENT RETAIL OUTLETS IN THE CITY


• Trinethra launches its first hypermarket Fab City in Mysore: Trinethra Super Retail Ltd (TSRL) opened its first hypermarket, FabCity in Mysore, on Narayan Shastri road. The hypermarket is spread over an area of 50,000 sq ft and stocks a huge variety of categories, including food and grocery, apparel, home furnishings, footwear, beauty products and accessories, stationary, toys and games, household appliances and consumer durables.

Nilgiris: The famous Nilgiris retail format at present have two of its branches operating in the city.

Café Coffee Day: Café Coffee Day (CCD), the is a biggest chain of coffee shops with 357 Cafés in 66 cities in India, recently entered into Mysore market by opening outlets in Kalidasa Rd.

UPCOMING RETAIL OUTLETS


Makkaji Chowk commercial complex

Proposal to construct a multistoried commercial complex on 4 acres of land at Makkaji Chowk .A five screen multiplex is also planned as part of the project. The land will be handed over to the promoter on a lease for 40 years and the project will be taken up on the Develop, Operate, and Maintain and Transfer basis. The promoter proposed to spend Rs.45 crore for the project and expects it to be completed by 18 months.

Commercial Complex at Yadavgiri:
Sankalp Group has proposed Sankalp Apartments & Commercial complex in Yadavgiri. A total of 16 acres of land is on a development process for the same.

Commercial complex at Gokulam Road:


A commercial complex of 3 lakh sqft area is proposed by a private builder in the Gokulam road of the Jayalaxmipuram area.


• Commercial complex at Jayalaxmipuram (Premier Studios):
A commercial complex along with 1000 Residential apartment is proposed in the Jayalaxmipuram area on 6
acres of land.

• Brigade Commercial Complex:
Brigade Group has completed  a commercial retail point in Gokulam road .The project comprises a retail point in the ground floor and the other three floors will have office spaces in it. The total built up area for this retail cum office point is around 35,000 sqft.

MARKET OUTLOOK

The market outlook in retail section is definitely looking positive with concept of malls catching up in a big way in Mysore Market. Retailers have begun to realize the importance of providing the right ambience to the
customer, progressing from the concept of customer delight to customer satisfaction. Keeping in view the fast pace of development of commercial and residential areas in the city, many existing retailers and private developers have proposed Malls in the city.

The present stock of retail space in Mysore is grossly insufficient and barely meets the demand of big retailers demanding floor plates between 10.000 sq. ft – 50,000 sq. ft. Looking at the upcoming retail boom,
the developers in Mysore needs to address this segment.

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