According to Cushman & Wakefield, Khan Market commanded the highest rentals of Rs 1,250 per square feet per year.

The second most expensive retail micro-markets is Connaught Place also in New Delhi at Rs 850 per square feet per year and DLF Galleria in Gurgaon at Rs 800 per square feet per year has emerged the third most expensive location.

Of these top three markets, only DLF Galleria Gurgaon recorded a year-on-year growth in rentals. These are established markets with long standing interest from occupiers as well as consumers on account of tenant mix, accessibility and legacy. Thus, most brands (especially F&B and fashion brands) have been working on establishing their presence in these markets, despite high rentals.

Linking Road in Mumbai is ranked as the fourth most expensive main street in India, with rentals of Rs 760 per square feet per year. Despite garnering interest from F&B players and apparel retailers, the location saw only a marginal increase in rentals. South extension in New Delhi at Rs 700 per square feet per year. Apart from Linking Road, Colaba Causeway in Mumbai is ranked high on the India Index (India Rank 6th) and recorded an increase of 4.2% with rentals of Rs 625 per square feet per year. Going ahead, limited availability of quality space could push rentals northwards in both these locations.

Kolkata’s Park Street (7th in India) at Rs 500 per square feet per year, Greater Kailash I in New Delhi at Rs 460 per square feet per year and Camac Street (9th in India) at Rs 450 per square feet per year also made to the top ten of the Indian ranks despite stagnant rental values on account of robust retailer interest in the market and regular inflow of brands to the location. Kemps Corner in Mumbai is tenth at Rs 425 per square feet per year.

Anshul Jain, Managing Director, India, Cushman & Wakefield said, “India’s retail real estate is going through rapid changes with consumer behaviour evolving faster than the sector can adapt to. The game changing phenomenon has been the rapid forward movement by e-commerce, which is challenging the existing brick and mortar format. Having said that, main streets have not seen a significant erosion in attractiveness. These continue to see interest from retailers, albeit most locations have no vacancy, which keeps the rentals status of these locations stable. However, very few new locations have been added to the retail geography of India in the last few years, owing to the cautious outlook by retailers.”

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