NEW DELHI: High street shopping destinations such as South Extension, Karol Bagh and Connaught Place in the national capital saw up to 9 per cent rise in rentals in the first quarter of 2012, but malls in NCR did not receive much attention from retailers due to paucity of quality space.
In sharp contrast to the high street locations, rentals across the shopping malls in the National Capital Region (NCR) remained unchanged from the previous quarter and incidentally from the last year as well, according to a report by global property consultant Cushman & Wakefield (C&W).
"NCR's retail market was largely driven by leasing activities on the high streets where retailers showed greater interest," C&W said.
Rentals in South Extension (I & II) rose by 9.10 per cent, Karol Bagh by 7.7 per cent and Connaught Place by 4 per cent on account of increased enquiries from retailers and some significant leasing activities.
"Malls, on the other hand, continued to see cautious approach by retailers thereby witnessing limited supply and restrictive leasing activities," C&W observed.
The limited availability of quality space has been dithering retailers to commit to the existing space resulting in vacancy levels remaining unchanged at 28 per cent from the previous quarter, the consultant explained.
C&W tracks retail markets of eight major cities of the country including NCR, Mumbai, Kolkata, Chennai, Hyderabad, Bangalore, Pune and Ahmedabad.
Vastrapur in Ahmedabad recorded the highest growth in mall rents at 33 per cent over last quarter mostly owing to renewals of existing tenants at a higher value, while A.S. Rao Nagar in Hyderabad saw highest increase in high street rentals at 26.7 per cent, the report revealed.
"The first quarter of the year has been positive for the retail market and indeed over the last one year. While the mall space has been moving cautiously to ensure that demand to supply ratio remains stable to maintain rental values, the high streets continue to see increased demand and interest from a range of retailers," C&W Director (Retail Services) Jaideep Wahi said.
Mumbai's retail market remained largely stable with both high streets and malls rental unchanged over the previous quarter. But, malls at Vashi saw rise in rental by 7 per cent.
In Bangalore, Vitthal Mallya Road was the hot bed for retail action with both high street as well as mall space in the location recording a growth in rental values. High street rentals rose by 25 per cent and mall rentals by 14 per cent.
Kolkata's traditional high street locations of Park Street, Camac Street and Elgin Street recorded notable rise in rentals on continued interest from retailers. Rental at Park Street was up by 14.3 per cent in the first quarter.
Source: http://articles.economictimes.indiatimes.com/2012-04-25/news/31399036_1_rental-values-mall-space-jaideep-wahi
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