Property rentals in Kolkata — at malls and in high-street locations — are moving north thanks to the increasing number of luxury retail brands and shortage of space in existing city malls.
According to market sources, rentals in high-street formats (shops other than in malls) have moved up by nearly 30-40 per cent on a monthly basis (till December 2012); while at malls, hikes have been steeper.
“Rents increased significantly on the back of continued demand over the month (of December) and retailers expanded following a steady consumer demand,” said Mayank Saksena, Managing Director-East, at real estate consultancy firm Jones Lang LaSalle India.
High-street rentals
Areas like Elgin Road or Park Street — near the city’s Central Business District — are commanding a monthly rate of nearly Rs 200 – 300 a square foot. The hike is around 40 per cent on a month-on-month basis.
High-street rentals are generally on a carpet area basis.
Elgin Road itself houses shops by US Polo Association, Calvin Klein and Tommy Hilfiger. Proximity of the Forum Mall has seen the area emerge as the new high-street. Rentals too inched up between Rs 190 and 260 a sq foot per month.
Gariahat – yet another prime location – is commanding rentals of nearly Rs 260-300 per sq ft a month.
“Absence of space in malls has led to an increase in rentals for high street formats,” Vimal Goel, Director, Avani Projects and Infrastructure told Business Line . Avani Projects promotes the Riverside mall in Howrah, on the western fringes of the city.
Mall Space
Existing malls such as City Centre (Salt Lake and Rajarhat) or South City hardly have any space left for leasing.
But in terms of rentals, Forum has set a benchmark.
Recent agreements have seen rentals (on a carpet-area basis) increasing between Rs 500 and 900 per sq ft a month – a near 100 per cent rise over a nine-year period. Revision in mall rentals is done after the expiry of a mandatory nine-year lease period.
Recent entrants at the Forum mall include Vero Moda (apparel wear), UK-based Elle, Jack & Jones (denim-maker) amongst others.
“Following the expiry of leases, rentals were revised and it’s a near 100 per cent increase over a nine-year period. Hikes are at par with the current inflation rates,” Khushboo Saraf, Team Head, Marketing, Forum Projects, said.
Another mall readying itself for inauguration is commanding rentals nearly Rs 500 - 700 per sq ft a month on the ground or first floor and between Rs 250 and Rs 300 per sq ft a month on the subsequent floors.
Avani Riverside charges a rental (carpet area basis) of around Rs 300 per sq ft a month.