Delhi's Khan Market most expensive retail location in the country
India has seen the highest rental increases in local currency terms; with South Extension being the biggest gainer with an annual growth of 111.5 pc in rentals.
Chennai, Nov. 14
India moved to 24th position (from last year's 41st position) in the world's top shopping streets according to "Main Streets Across the World 2006," an annual report on global retail rents by Cushman & Wakefield, international property consultants.
New Delhi's Khan Market at Rs 700 per sq. ft, the most expensive retail location within India, having witnessed a 75 per cent annual rental growth, moved the country's position up by 17 places.
This makes India this year's biggest riser in the ranking of the world's most expensive shopping locations in terms of retail rents. New York's Fifth Avenue continues to retain the top position followed by Causeway Bay in Hong Kong and Avenue des Champs Elysees of Paris is at third position.
Mr Sanjay Dutt, Executive Director, Transaction Services Cushman & Wakefield, said that with branded players looking for quality space and convertible footfalls, demand for high street retail locations such as Khan Market, South Extension in Delhi and Linking Road in Mumbai, has increased.
On an Asia-Pacific basis, India has seen the highest rental increases in local currency terms; with South Extension being the biggest gainer with an annual growth of 111.5 per cent in rentals, followed by Greater Kailash I at 110 per cent. Overall, Asia has highest rental increases with rents up by 20 per cent.
Mumbai, which had last year shown signs of stabilising, is also witnessing increased rental growth with Colaba showing an increase of 36.4 per cent and Linking Road 57.9 per cent.
Locations in Bangalore
Indiranagar in Bangalore is the prime retail location with rents reaching Rs 115 per sq. ft per month from Rs 60 sq. ft per month, last year. Though M.G. Road and Brigade Road continue to be prime retail locations, improved infrastructure has resulted in stronger growth in Indiranagar.
While Hyderabad has been on the preferred list of retailers in the recent years, the location choices of retailers remain focused around Begumpet, Banjara Hills Road No. 1 and 10, with rates increasing by 105 per cent at Rs 84 per sq. ft per month and stretches closer to Panjagutta Circle showing a growth of 115 per cent at Rs 97 per sq. ft per month.
Chennai demand consistentThough, in Chennai, the demand for retail space has remained consistent, with various brands entering the market and looking for quality space within premium streets such as Khader Nawaz Khan Road. Usman road at T. Nagar has also been a thriving market for traditional retailing, and continues to demand high rentals. Rents in Adyar and Anna Nagar, have grown by 15 per cent and 14 per cent at Rs 75 per sq. ft per month and Rs 80 per sq. ft per month, respectively. According to Cushman & Wakefield India Research, high-street locations will continue to be viewed favourably by retailers despite the rapid growth in mall development. At present, high streets are going through repositioning and with fresh supply being added through mall and other modern retail channels, it will witness realignment in prices. Currently, there are estimated to be 60 operational malls across the country with another 600 under development. C&W estimates that an additional 51.5 million sq. ft would be added by way of malls, multiplexes, modern retail channels in Tier I, II and III cities in India over the next three years.