BUY sell RENT Patna

residential/commercial

MALL IN PATNA............ ( 20/10/2014)


Image description

 

The primary ingredients for making a mall in Patna are:-Site location, scale and size. Finding a site for the mall in Patna at a suitable location and at a reasonable price is challenging. In the first place, land costs in Patna are quite high. Residential prices in Patna over the last five years have grown significantly, making retail real estate in Patna a suboptimal asset class. This will affect the financial viability and returns for retail projects. Added to the viability issue, retail also needs higher access to drive footfalls, and therefore close to dense catchments. Shopping mall also needs to be limited to a lower number of floors. This requires higher floor plates, and there are constraints of use of FSI for developers in Patna. It is difficult to find larger land parcels within city limits and then effectively utilizing the potential of the land in Patna.  In some cases, traffic management and accessibility of the site is a big problem for mall developers in Patna even if the land is available. In other cases, the support infrastructure may not suffice to support heavy footfalls. Also, the approvals and environmental clearances required for retail developments can pose a challenge for mall developers in Patna

 

 

SITE LOCATION: - Shaguna Mode- Khagaul Road

 

Our team suggests that the Shaguna mode – Khagaul road is the right location to develop a mall in Patna. We are looking at a time horizon of five years for the development of THE MALL IN PATNA on this road. The reasons which make this road our favorite for A MALL IN PATNA are:-


Accessibility and transport connectivity by car, public transport and service vehicles. The proposed metro, the flyovers on Bailey road and the flyover on railway track from Phulwarisharif side; development of Bihta as industrial hub in the coming master plan, Railway siding at Danapur Railway Station and the new Patliputra Railway Station. The New Digha Road cum Rail bridge and the elevated road from AIIMS to Digha; make it a well connected destination from all sides. This will boost not only customer footfalls but also the efficient delivery of goods and services to the stores located in the mall.


 Visibility from approaching roadways, and proximity to a good road network that also connects the physical catchment of the proposed mall with its potential residential population; Danapur, Danapur Cantt., Phulwarisharif, Bihta, Digha and a dense population of Apartment dominated areas of Patna beyond Rupspur Nahar.


Size and configuration of the site, since an optimal size is necessary to achieve critical mass catering to the catchment area. In the case of mixed-use developments, the various segments should complement each other and work together. Also, our attention is on the ability of the site to offer future expansion if required in the long run. In the case of mixed use developments, appropriate circulation of all asset classes is important


Topography and shape of the site, with supporting infrastructure (a regular shape providing maximum space utilization is a preferred parameter while selecting a mall site) and our team thinks such land parcels are available in this area.


Current and future competition and its impact, the current and anticipated supply of retail space and the performance of these spaces too have been evaluated by us. There is no current competition and the catchment area is developing at a fast pace with schools, hospitals, educational institutions and a large number of Apartments in Patna coming up in this part of the city. The study of the catchment, its demographics and consumption patterns are vital, as it is sales and consumption that will bring in the rentals for the proposed mall in Patna. Most other costs such as construction and land are controllable and are fixed.

 

In short, the proposed site is ideal for a mall in Patna as it has the right mix in terms of the following parameters: location, accessibility, visibility, market potential, right size and topography.

 

The price of land and the financial feasibility of the project will play an important role in site selection. The price of land in Patna, in this part of the city; is on higher side .Retail performance and retailers’ ability to pay rent is predictable regardless location, so the final potential of the proposed site for a mall in Patna (and the revenue generation of the mall) can be guesstimated.

 

We understand that the retail market of Patna is less mature and hence the retailers’ sales performance will be lower (as is the number of interested retailers) and the size of stores required are smaller. But we realize that the local travel of 10 kms is no deterrent for the population of Patna to reach a complex where they can shop and entertain themselves.

 

Making the best of a location in Patna

 

While location is a fundamental consideration in a selecting a site for a Mall in Patna, a major challenge can be addressed if the size and tenant mix are formulated according to the location. In most cases, the more perplexing changes can be overcome by adopting a structured and planned approach for development, execution and management of the mall. 

 

Facilities provided by a shopping mall - such as parking, conveniences and other comforts - also play a major role in attracting shoppers. The proportion of quality mall supply in Patna is still low, so a mall developed as per international standards (with good design and tenant mix) will invariably meet with success. Here, it must be noted that successful shopping mall in Patna do not need to be large; an appropriately designed smaller project in the right catchment which is tenanted adequately for the catchment can be successful in Patna.


Also, a mall in Patna can be converted into a destination shopping centre by incorporating critical mass and retail categories that are ideal for the catchment population and the trade area. To achieve this, it is important to identify the characteristics of the potential shoppers in Patna in terms of age, income and preferences. This is helpful in catering to the existing gaps in terms of retail and leisure offerings within the catchment. 

 

The importance of market research 

 

A structured and planned research study is invaluable when it comes to creating a shopping mall with the right size and right tenant mix. After reviewing the location, the optimal size of the shopping centre in Patna can be established so as to arrive at the retail size that a particular site in Patna can sustain. A macro-level demand and supply analysis of retail according to the catchment, demographics and the availability of supporting infrastructure helps in assessing the size of the development which can be supported by demand.

 

It is acceptable to make a shopping mall mix aspirational for the location, anticipating changes that the catchment will undergo over the medium term of 5-10 years in Patna. This is the period wherein the mall in Patna will become operational and stabilize. However, completely ignoring the current requirements of the neighbourhood and the catchment is dangerous. 

 


 PREVIOUS