The 28th edition of Cushman & Wakefield’s global flagship report, ‘Main Streets Across The World’ has once again ranked New Delhi’s Khan Market as the costliest location to rent shop in India.
The report tracks 462 of the top retail streets around the globe ranking the most expensive in each country by their prime rental value and thus enabling analysis of headline trends in retail real estate performance.
It said that Connaught Place, Khan Market and Galleria (Gurgaon) – which are the top three most costly retail locations in India for 2016 – are expected to see rental uplifts over the year due to limited quality space. Rising demand for quality space from cinemas, F&B operators and fashion retailers have further helped push the rentals.
While majority of expensive retail micro-markets are located in Delhi-NCR, Bengaluru is also witnessing demand from retailers as the new commercial and residential developments along BEL Road, North Bengaluru and Sarjapur Road, the report said.
Main street locations in close proximity to luxury malls such as Lavelle Road and UBL Road are registering more enquires due to the lack of availability in the malls and is likely to result in positive rental growth of between 5 per cent to 10 per cent in the next 12 months as the imbalance between supply and demand falls further to favour landlords.
Despite limited availability of suitable spaces, the main streets of Linking Road and Fort in Mumbai continue to witness strong demand, especially from apparel retailers, whereas Bandra-Kurla Complex (BKC) is seeing heightened activity from F&B operators. Demand from apparel retailers is likely to remain buoyant as international apparel brands continue to venture into the main streets of Mumbai in the coming months.
In Hyderabad the retail scene is dominated by fashion brands with the likes of Zara and H&M entering the market over the last twelve months, the report noted.
Here’s the list of ten most expensive retail micro-markets in India on the basis of rentals per square feet per year:
11 Khan Market
Commanding the highest rentals of Rs 1,250 per square feet per year, National capital’s upscale retail location, Khan Market has emerged as the costliest place to rent a shop in in the country. However, the market’s position has slipped two places from last year to become the world’s 28th most expensive retail location.
Despite witnessing stable rental values the market’s position slipped due to marginal increases in rentals of other countries.
It has been the most expensive market in India for more than five years as demand for retail space has remained steady on account of its location and current occupier profile. The area, which is centrally located within the city of New Delhi, is flanked on all sides by high-end residential catchment areas.
22 Connaught Place
The rentals at Connaught place – fondly known as CP – are Rs 850 per square feet per year. It is easily is one of the largest financial, commercial and business centres in the country.
Located right in the heart of New Delhi, Connaught Place is a bustling hive of activity. The Outer Circle is known as the Connaught Circus (officially Indira Chowk),having rows of restaurants, shops and hotels.
In addition to being the second costliest retail destination, CP recently become the world’s seventh most costliest office destination, according to property consultant CBRE.
Just like last year, Galleria Market in Guragon has once again ranked at the third position as the costliest property rental rates in the country. Moreover, of the top three markets in India this year, only DLF Galleria Gurgaon recorded a year-on-year growth in rentals. The rentals stood at Rs 800 per square feet per year.
Gurgaon’s oldest open-air marketplaces, Galleria has a good mix of all kinds of brands unlike the malls across the city. The market is preferred meet-up destination for consumers with variety of restaurants and shops in the same complex.
From pharmacies, boutiques, restaurants, apparel, sports, electronics, footwear, stationery, books, beauty parlours, spa, groceries to kitchen and interiors, gifts and pet stores, one can find everything and anything at Galleria.