Mall owners brace for second wave of rental income loss
Following a steep decline in rental revenue for malls later year, the second wave of Covid-19 and subsequent lockdowns has led mall owners to brace for the same effect this year.
“Fall in revenue for entire last financial year has been about 50% and with the second wave, it will again be the same,” Abhishek Bansal, executive director of mall business Pacific Group, told the Press Trust of India about the outlook for the current financial year.
Bansal has called on government authorities and banks to give assistance to both mall owners and businesses which retail in malls during this financially challenging time. Some rental rates have fallen by up to 25%, according to Bansal, and the disruption to retail in the ongoing coronavirus wave could exacerbate this trend. Many retailers without online operations are facing zero income and mall owners often have loans to pay off.
Malls in many locations across India are currently closed as part of state-wide lockdowns. Other areas see malls operating at a reduced capacity with weekend curfews, reduced opening times, and social distancing measures. As Covid-19 cases continue to mount in the country, there are calls for a nationwide lockdown and many states are extending their local lockdowns as well. It will thus be a significant amount of time before malls can operate at full capacity.
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