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Retail rentals remained subdued in Mumbai during the third quarter of the year due to lack of activity and limited churn in most micro markets across high streets and malls.
The only exceptions were Andheri-Lokhandwala high street and malls in Vashi.
While Andheri-Lokhandwala saw a rise in rentals of about 3.3 per cent over the previous quarter, the Vashi mall space saw an increase of about 7 per cent, according to a report by real estate consultancy Cushman and Wakefield.
“In Mumbai, there is a persistent demand for quality retail space from both national and international brands. However, due to lack of quality retail space, this demand is not being serviced. There has been no new mall supply this year in Mumbai, leaving only existing vacant space for retailers. However, the existing vacant spaces are either in low-performing malls or are in areas which do not yield good sales. Thus, despite high demand and no new supply, vacancy in malls has remained unchanged,” Cushman and Wakefield Director (Retail Agency) Jaideep Wahi said.
Rental values to remain Stable
Commenting on the outlook, the report said “prime main street locations and quality mall developments would continue to receive enquiries by retailers looking to expand operations into the city. Rental values are expected to remain stable in mall developments and increase marginally in main streets due to preference by both domestic and international brands that are expected to enter the Indian market in the coming months.”
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