New Delhi: Retail space rentals in Delhi's high street Connaught Place have appreciated by 12 per cent - the most among the country's top eight cities - during the January-March period over the previous quarter, according to property consultant Cushman & Wakefield.
Mumbai's prime street Linking Road, on the other hand, witnessed the sharpest drop of 12 per cent in rentals.
"Prime main street of Connaught Place (inner circle) in NCR recorded the maximum rise of 12 per cent in rentals owing to supply constraints coupled with renewed interest from international brands," C&W said in a statement.
The average monthly rentals of CP (inner circle) stood at Rs 725 per sq ft.
In shopping malls category, the report said that Noida?s mall witnessed sharpest rise of 10 per cent in rentals because of dearth of quality mall space and high demand, while Mysore Road in Bengaluru saw sharpest fall of 10 per cent in rentals.
In Delhi-NCR, malls in South Delhi witnessed a rise in rentals by modest 2 per cent owing to lease expirations and consequent churn in mall destinations.
Apart from CP main street and Noida-South Delhi mall, the rentals of other malls and main streets including Khan market remained stable in the January-March period compared with the previous quarter.
C&W India Director (Retail Agency) Jaideep Wahi said: "Foray of international brands into premium malls and main streets is a trend that is here to stay in the Delhi NCR region.
"Superior quality retail options with ample visibility and considerable frontage in malls and main streets alike will see strong transaction activity. This will be responsible for escalating rentals in both main streets and malls."
The transaction activity in niche segments like luxury and jewellery would gather further momentum, Wahi said adding that "food & beverages is another segment to watch out for".
According to the report, the mall vacancy in the top eight cities -- Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune -- fell to 15.85 per cent during the January-March period from 16 per cent in the previous quarter and 17.13 per cent in the year-ago period.
Only one million sq ft of supply was added in the first quarter of 2013 calendar year in Chennai.
"This quarter witnessed the deferment of 5 malls amounting up to nearly 1.73 million sq ft with Chennai witnessing the deferment of 2 malls amounting to 530,000 sq ft. While Pune witnessed the deferment of 1 mall of 700,000 sq ft mall space, NCR and Bengaluru witnessed the deferment of 1 mall each of 500,000 sq ft," the statement said.