The 28th edition of Cushman & Wakefield’s global flagship report, ‘Main Streets Across The World’ has once again ranked New Delhi’s Khan Market as the costliest location to rent shop in India.
The report tracks 462 of the top retail streets around the globe ranking the most expensive in each country by their prime rental value and thus enabling analysis of headline trends in retail real estate performance.
It said that Connaught Place, Khan Market and Galleria (Gurgaon) – which are the top three most costly retail locations in India for 2016 – are expected to see rental uplifts over the year due to limited quality space. Rising demand for quality space from cinemas, F&B operators and fashion retailers have further helped push the rentals.
While majority of expensive retail micro-markets are located in Delhi-NCR, Bengaluru is also witnessing demand from retailers as the new commercial and residential developments along BEL Road, North Bengaluru and Sarjapur Road, the report said.
Main street locations in close proximity to luxury malls such as Lavelle Road and UBL Road are registering more enquires due to the lack of availability in the malls and is likely to result in positive rental growth of between 5 per cent to 10 per cent in the next 12 months as the imbalance between supply and demand falls further to favour landlords.
Despite limited availability of suitable spaces, the main streets of Linking Road and Fort in Mumbai continue to witness strong demand, especially from apparel retailers, whereas Bandra-Kurla Complex (BKC) is seeing heightened activity from F&B operators. Demand from apparel retailers is likely to remain buoyant as international apparel brands continue to venture into the main streets of Mumbai in the coming months.
In Hyderabad the retail scene is dominated by fashion brands with the likes of Zara and H&M entering the market over the last twelve months, the report noted.
Here’s the list of ten most expensive retail micro-markets in India on the basis of rentals per square feet per year:
11 Khan Market
Commanding the highest rentals of Rs 1,250 per square feet per year, National capital’s upscale retail location, Khan Market has emerged as the costliest place to rent a shop in in the country. However, the market’s position has slipped two places from last year to become the world’s 28th most expensive retail location.
Despite witnessing stable rental values the market’s position slipped due to marginal increases in rentals of other countries.
It has been the most expensive market in India for more than five years as demand for retail space has remained steady on account of its location and current occupier profile. The area, which is centrally located within the city of New Delhi, is flanked on all sides by high-end residential catchment areas.
22 Connaught Place
The rentals at Connaught place – fondly known as CP – are Rs 850 per square feet per year. It is easily is one of the largest financial, commercial and business centres in the country.
Located right in the heart of New Delhi, Connaught Place is a bustling hive of activity. The Outer Circle is known as the Connaught Circus (officially Indira Chowk),having rows of restaurants, shops and hotels.
In addition to being the second costliest retail destination, CP recently become the world’s seventh most costliest office destination, according to property consultant CBRE.
Just like last year, Galleria Market in Guragon has once again ranked at the third position as the costliest property rental rates in the country. Moreover, of the top three markets in India this year, only DLF Galleria Gurgaon recorded a year-on-year growth in rentals. The rentals stood at Rs 800 per square feet per year.
Gurgaon’s oldest open-air marketplaces, Galleria has a good mix of all kinds of brands unlike the malls across the city. The market is preferred meet-up destination for consumers with variety of restaurants and shops in the same complex.
From pharmacies, boutiques, restaurants, apparel, sports, electronics, footwear, stationery, books, beauty parlours, spa, groceries to kitchen and interiors, gifts and pet stores, one can find everything and anything at Galleria.
Linking Road in Mumbai is ranked as the fourth most expensive main street in India, with rentals of Rs 760 per square feet per year. Despite garnering interest from F&B players and apparel retailers, the location saw only a marginal increase in rentals.
Linking Road and Hill Road were two of the main shopping hubs in the suburbs of Mumbai. Over the years this shopping hub has stretched beyond its original length. The road starts from S.V Road in Bandra and continues to Khar, and extends beyond this towards Santacruz and Juhu in the north of the city.
It is a shopping hub for every pocket size with everything from street stalls selling products for a bargain to niche stores and boutiques for specialized products to high end international brands.
Over past decade Linking Road has gained popularity because its night life.
55 South Extension, New Delhi
One of the posh markets in Delhi, South extension stood at number five with Rs 700 rental per square feet per year.
Located on Ring Road, South Extension (known to locals as “South Ex”) is a huge neighbourhood in South Delhi and is divided into two parts: South Extension I and South Extension II.
South Extension is considered one of the most posh and expensive areas in Delhi. The markets – both Part I and Part II are home to some of the best brands in the world apart from being hubs where one can find some delicious food.
66 Colaba Causeway, Mumbai
Apart from Linking Road, Colaba Causeway in Mumbai is ranked high on the India Index (India Rank 6th) and recorded an increase of 4.2 per cent with rentals of Rs 625 per square feet per year. Going ahead, limited availability of quality space could push rentals northwards in both these locations.
It is considered as one of the expensive street markets in Mumbai. At a stone’s throw from the famous tourist attractions like Gateway of India and Taj Hotel, it is flooded with all kinds of shops which sell goods that hold artistic value.
77 Kolkata’s Park Street
Kolkata’s Park Street stood at number 7 at Rs 500 per square feet per year. Officially known as Mother Teresa Sarani and earlier Burial Ground Road, Park Street is a famous thoroughfare in the city of Kolkata.
In the 1970s and 1980s much of Kolkata’s night life took place at Park Street. Many noted musicians played at popular night spots such as Trinca’s, Blue Fox, Mocambo and Moulin Rouge. Even before that, in the 1940s, 50s and 60s Kolkata’s prolific night life was centered around Park Street.
Till date, it remains Kolkata’s foremost dining district, with many restaurants and pubs dotting it. It is often known as “Food Street” and also “The Street that Never Sleeps”.
88 Greater Kailash I, New Delhi
Greater Kailash I in New Delhi is at Rs 460 per square feet per year. Often referred to as GK, it is a residential area in South Delhi, comprising several neighborhoods and multiple markets. It is home to some of the most affluent families in Delhi.
Greater Kailash is divided into two zones, Parts 1 and 2 – both with thriving markets replete with brands, fine dine restaurants and QSRs. It is conveniently located around a section of the Outer Ring Road, in the heart of Delhi.
In 2009 Greater Kailash was rated as the safest place in Delhi by Times of India.
99 Camac Street
Camac Street, the street running in the central business district of Kolkata, India, from Park Street to AJC Bose Road, at Rs 450 per square feet per year also made to the top ten of the Indian ranks despite stagnant rental values on account of robust retailer interest in the market and regular inflow of brands to the location.
In the mid-1970s, the Park Street ‘razzmatazz’ spilled onto Camac Street which is, today, considered to be a high street of Kolkata with many commercial establishments and high end shopping destinations, with lots of shopping malls, boutiques, restaurants and stand alone retail outlets.
It intersects with Middleton Street and Shakespeare Sarani, two other important roads. Several smaller roads like Middleton Row, Short Street, Victoria Terrace and Albert Road merge into Camac Street from the east or west.
1010 Kemps Corner
Kemps Corner in Mumbai is ranked at number 10 at Rs 425 per square feet per year. It is an upmarket neighbourhood in South Mumbai flanked by the Altamount Road on one side and the Malabar Hill on the other.
The place has several upmarket residential establishments as well as high end shopping outlets.