Khan Market in New Delhi retained its position as the most expensive retail location in India, followed by Mumbai’s Linking Road, real estate consultants Cushman & Wakefield said in a report.
Globally, the top two most expensive retail location slots were taken by Causeway Bay in Hong Kong and Fifth Avenue, New York.
Khan Market lost five spots to finish 26th in 2012 from 21st in 2011, according to C&W’s annual survey. With many major international and national retail brands being present in Khan Market, and little vacancy, consistent demand have kept values high in this location.
Khan Market recorded rentals of R1,225/sq ft a month, while Mumbai’s Linking Road (Western Suburban) recorded a rental value of R850.
India, however, dropped in the global ranking from 21st to 26th position due to the weakening of the Indian rupee against the dollar.
Prime rents in India rose by 12.5% on the back of strong occupier demand across all sub-sectors.
However, retailers increasingly favoured high street properties, the report said. Colaba Causeway in Mumbai recorded a rental increase of 75% over last year, on the back of strong retailer demand and continuous preference for prime high street properties in the city. Kolkata's Park Street and Chennai's Khader Niwaz Khan Road were among the global top ten cities to register highest annual rental growth.
“Traditional high streets across India have been witnessing renewed interest from retailers, thereby keeping rental values high in these locations. Additionally, the possibility of a boom in global retailers in India, existing global brands have been showing urgency to occupy prime retailing locations,” said Jaideep Wahi, director retail services Cushman & Wakefield. Bengaluru’s Brigade Road experienced a rental decline of 9% over the previous year due to excessive development work around the area making retailing tough in the area.
Hyderabad’s Jubilee Road No. 36 and C. G. Road in Ahmedabad registered a slowdown in rental values of 7% over the previous year.