New Delhi: High street retail locations such as South Extension, Khan Market and Karol Bagh in the national capital witnessed up to 21 percent rise in rentals during the June-September period over the previous quarter, according to global property consultant Cushman and Wakefield.
In its report on NCR’s retail market, C&W said that the high street of South Extension (I&II) registered a growth of about 21 percent increase in rental values over the previous quarter, followed by Karol Bagh which registered a growth of 7 percent 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 percent over the last quarter," it said, adding that these high streets retail locations 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," the report said.
Cushman & Wakefield India Director, Retail Agency Jaideep Wahi noted that 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," he added.
Mall rentals remained stable across the city owing to high vacancy rates which was recorded at about 27 percent in the third quarter of 2012.
"In long term, the leasing momentum is likely to increase specially for high streets, exerting upward pressure on rentals in select locations," Wahi said.