Hyderabad, Chennai and Bangalore have witnessed the highest high-street rental growth across India, according to a retail survey by real-estate services firm, Cushman & Wakefield. Banjara Hills in Hyderabad has seen the highest increase in annual rental growth at 114 per cent over last year, while Nugambakkam/Khader Nawas Khan Road in Chennai witnessed rental growth of 106 per cent. SP Road/Begumpet in Hyderabad and Koramangala 80 Feet Road in Bangalore have seen 100 per cent and 92 per cent growth respectively.
Mr Rajneesh Mahajan, National Head, Retail, Cushman & Wakefield India, says, “The economic growth in southern India has provided a large consumer base with increased spending power. The retailers are enjoying better revenues in these markets not only from the existing retail destinations but also in the suburban locations. As the store revenues become comparable to Delhi and Mumbai, the demand for retail real estate would push the prices closer to these two markets.”
Banjara Hills and Jubilee Hills, though traditional markets, are preferred by new-age retailers; demand for space here far supersedes the supply. Begumpet witnessed cent percent increase in rentals over the last year, indicating strong demand dynamics.
On the retail radar
The exponential growth in residential development in Hi-tech city would bring these pockets up on the retailer radar in the future. With new high streets emerging in the future, the prices would surely witness a downward curve in the next 18-24 months, the report says.
Though Commercial Street and Brigade Road continue to be prime retail locations in Bangalore, improved infrastructure, including parking facilities, has resulted in stronger growth in Indiranagar and Koramangala. Koramangala 80 Feet Road emerged as the only high street in Koramangala where smaller brands have commenced operations.
With rents up by 92 per cent year-on-year, the region currently has a host of big brand outlets.
Khader Nawaz Khan Road in Chennai has witnessed annual rental appreciation of 106 per cent compared to 20 per cent last year.
The region has the presence of brands such as Benetton, B&O, Atmosphere, Wills Life Style, Stanley Boutique, Evoluzione, Subway, Movenpick, Mocha etc.
Most preferred markets
Mumbai and Delhi remain the best markets for retailers across categories and witness consistent demand from retailers due to the double-digit growth in revenues achieved across brands within the high street markets.
Prime high streets such as Khan Market, Greater Kailash, South Extension and Connaught Place in Delhi, and Linking Road and Kemp Corner in Mumbai provide better revenue for retailers. These will continue to be viewed favourably by retailers despite the rapid growth in mall development across the cities.
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