How Real Estate Slowdown Affects Bollywood

Bangalore: Slowdown in real estate market is affecting not only commercial or residential market but also the entire Bollywood industry. Surprised? Yes, the revenue on recent Bollywood movie releases is declining because of sluggish real estate market. Due to the delay in construction, new mall supply has come to a halt across the country and so fewer screens are available for a new film to release.

According to industry estimates, about 150 multiplexes in India got trapped in project delay because of the market slowdown, reports NDTV Profit.

Multiplexes contribute a major share of a film’s total collection and nearly 90 percent of these multiplexes are housed within mall premises. Therefore, a delay in construction of malls in turn affecting the Bollywood.

“Growth in multiplex screens does make a significant difference to the collections of movies today. For example, the average collection from multiplex screens last year was 5 lakh per screen for Rowdy Rathore and 6.5 lakh per screen for Barfi. So, if another 50 or 100 screens were available, one can safely assume that collections would have jumped by 3 crore for Rathore and 1.5 crore for Barfi, even if 60 percent of these screens were allocated to one of these films,” said Siddharth Roy Kapur, MD, Studios, Disney UTV, reports Economic Times.