According to a report on rentals of mall spaces by real estate consultant CB Richard Ellis (CBRE), in the last one year, mall space rentals across the National Capital Region (NCR) have witnessed an increase between 30 per cent and 50 per cent.
“In the current quarter, some locations witnessed a slight decline as compared to previous quarter values. The primary reason for this is the relaxation in demand for retail space at prevailing rentals, and the financial viability of the retailers in the recently operational malls,” the report says. It adds that malls and stores in locations including MG Road in Gurgaon, and South Delhi will continue to report high conversions and sales, and rentals in these locations are expected to remain stable in the short-to-medium term.
“A situation of over-supply and saturation resulting in subsequent correction of rentals may occur in certain pockets and micro-markets in the short to medium term,” Anshuman Magazine, chairman and managing director, CBRE, said.
Magazine added that there is significant demand to cater to well-planned malls in established locations, which are not likely to see change in demand or values in the near future.