Mumbai records maximum growth in retail rent globally
New Delhi: Mumbai has witnessed the highest growth in retail rentals globally with city's Colaba Causeway recording 75 percent jump in rents over the last year, according to the report by property consultant Cushman & Wakefield.
Kolkata's Park Street and Chennai's Khader Niwaz Khan Road were at 5th and 10th positions, respectively, in the list of 'Top 10 - Global Highest Retail Rental Growth Markets 2012', C&W said in its report 'Main Streets Across the World'.
Khan Market in the national capital retained its position as the most expensive retail destination in India but globally its ranking dropped to 26th from 21st due to the weakening of the Indian rupee against US dollar, the report said.
"Mumbai witnessed the highest rental growth globally. Colaba Causeway in Mumbai recorded a rental increase of 75 percent over last year, on the back of strong retailer demand and continuous preference for prime high street properties in the city," C&W said in a statement.
Colaba Causeway had a monthly rent of Rs 700/sq ft as on June 2012, up by 75 percent from June 2011, the report said.
Kolkata's Park Street stood at fifth position with 53.8 percent rise in rentals, while Chennai's 'Khader Niwaz Khan Road' ranked 10th with 36.7 percent jump in rents.
Garcia d'avila (ipanema) in Rio De Janeiro (Brazil) and Times Square in New York (US) were at second and third positions with rental growth of 64.7 percent and 55.6 percent, respectively.
Commenting on the report, C&W Director (Retail Services) Jaideep Wahi said that traditional high streets across India have been witnessing renewed interest from retailers thereby keeping rental values high in these locations.
"The possibility of a boom in global retailers in India, existing global brands have been showing urgency to occupy prime retailing locations. Thus prime retailing locations of Mumbai, Kolkata and Chennai have recorded high growth in rental values in the last year," Wahi added.
Meanwhile, in the list of the world's ten most expensive retail locations in 2012, Causeway Bay in Hong Kong (China), Fifth Avenue in New York (US) and Avenue des Champs-lys’es in Paris (France) were at the top three positions, respectively.
Hong Kong’s Causeway Bay overtook New York’s 5th Avenue as the most expensive retail location in the world. Paris gained two positions to settle at 3rd position.
"Khan Market in New Delhi emerged as the 26th most expensive in the world, retaining its position as most expensive retail location in India. India however, dropped in the global ranking from 21st to 26th position due to the weakening of the Indian Rupee against US Dollar," C&W said.
Khan Market recorded the highest rental values for the year in India at about Rs 1,225 per sq ft a month, a marginal increase of two percent over the previous year.
"This main-street (Khan Market) has always been India’s most prime retail location, due to the advantage of being situated in the midst of the premium most residential boulevard of the capital city," the consultant observed.