Track2Realty: In NCR’s retail market, the high street of South Extention (I&II) registered a growth of approximately 21% increase in rental values over the previous quarter, followed by Karol Bagh which registered a growth of 7% in the same period. Khan Market, remained India’s most expensive retail destination with a rental value of INR 1,250/ sf/mth which was higher by 2% over the last quarter. These are the findings of the latest report released by Cushman & Wakefield.
These established high streets have been high on demand The primary reason for this growth is the limited availability and churn, thus available space in this market commands a premium, pushing the rental values up. Retailers have shown a preference for high streets as opposed to malls where rentals did not see any change over the last quarter.
Jaideep Wahi, Director, Retail Agency, Cushman & Wakefield India said, “The preference for High streets is a global phenomenon and India follows the trend. In NCR specifically, malls have been a recent phenomenon and many shoppers continue to show allegiance towards the main streets. This is the primary reason why many brands continue to have presence in high streets despite having space in malls.”
Mall rentals remaind stable across the city owing to high vacancy rates which was recorded at approximately 27% in the third quarter of 2012, which improved by 1% over the previous quarter. A new mall, measuring approximately 350,000 sf started operations in Greater Noida.
Jaideep Wahi said, “In long term in the leasing momentum is likely to increase specially for high streets, exerting upward pressure on rentals in select locatios. The fourth quarter is expected to witness 1.2 million square feet of mall supply in West Delhi and Greater Noida. The renewal of leases in certain malls is expected to put an upward pressure on rentals in the short term.”
