Experts say people are unwilling to spend and the overhead costs for maintaining the malls have gone up

Declining sales due to economic slowdown have forced real estate developers in Vadodara to apply brakes to the euphoric development of malls and multiplexes across the city. Experts say that people are unwilling to spend and the overhead costs for maintaining the shopping malls have gone up. Recently, malls in Ahmedabad had to close down due to the rising operational costs. Now, it is the retailers in Vadodara who are finding it hard to survive.

Odyssey, a developer, was supposed to construct a mall near Rhino Circle in Vadodara. The project has been shelved for now. Another shopping mall near Indra Park, between Bhavan’s school and Dawat Hotel, was to come up, but work has not started yet. Siddhi-Vinayak Shopping Complex behind the railway station is ready for possession but yet to find a buyer.

“A group that was to set up a mall in Vadodara has stalled the project. They had booked the hotel, but now they say they don’t want to go ahead with the project, fearing it will not be sustainable,” said Samip Shah, a hotelier.

Even those who have developed and rented out properties have been forced to re-negotiate prices. “We had rented out space to a garment retailer. Since the garment industry has suffered a lot, they are now asking us to renegotiate the prices,” said Chandan Gyanchandani who developed the Trident Mall in Vadodara.

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