Track2Realty Exclusive: East Zone (Kolkata)
The overall retail market in the city continued to display sluggish trend with only a few major retailers expanding their operations in large format standalone stores in established high street locations.
The organized retail space witnessed low availability as only one mall of 150,000 sq ft became operational. Though the development pipeline looks healthy for 2012 and 2013, the extension in the delivery timelines coupled with negligible churn of retailers has been severely impacting the availability of mall space.
Rental values in High Streets such as Park Street and Camac Street continued to witness decent appreciation due to lack of availability and robust demand, especially from food and beverage retailers. The mall rentals remained largely stable due to limited availability coupled with restrained demand.
Best performing micro markets:
– Organised retail space in central and suburban locations continue to be amongst the best performing retail markets in the city. High Streets such as Park Street and Camac Street continued to be the most sought after locations due to their established popularity.
Low performing markets:
– None
Major Transactions:
| Company | Location | Mall/High Street | Area (sq ft) |
| Baazar Kolkata | Gariahat | – | 12,000 |
| Sasya Boutique | Shakespeare Sarani | – | 10,000 |
Source: Market Intelligence, DTZ Research
Emerging Markets: New Town, Rajarhat
Developments expected: Circa 2 million sq ft of mall space is expected to come on stream in 2013.
Outlook
The reforms in FDI policy will not only facilitate the entry of international multi brand retailers but also fuel demand from Indian brands in the short term. With most of the new mall supply expected to be completed only six to nine months later, rents in existing malls and established high streets will witness a further appreciation across most markets.
Ends….
