The country's most expensive retail hub –Khan Market in New Delhi - saw a drop of between 8-17% in average monthly rentals in the first quarter of 2021
NEW DELHI :
Delhi's prime retail market Khan Market witnessed an 8-17 per cent decline in monthly rentals during January-March compared with the year-ago period, according to property consultant Anarock.
High street markets of Kala Ghoda, Bandra Linking Road, and Fort in Mumbai also saw high street retail rentals decline anywhere between 5 per cent to 10 per cent during the same period, it said in a statement.
"Retail sector has been one of the worst affected due to the pandemic since early 2020. With almost zero sales amidst lockdown and thereafter as well for few months, we saw retailers closing their stores or even curtailing their future expansion plans," said Pankaj Renjhen, COO and Joint MD, Anarock Retail.
As a result, the average monthly rentals across the major high street retail markets mostly saw corrections across cities, he added.
However, there were also few markets that saw an upward trend.
For instance, Hyderabad localities such as Gachibowli, Banjara Hills, Jubilee Hills saw average retail rentals increase in the first quarter of 2021 against the first quarter of 2020.
"If we consider trends of the previous two quarters, the retail segment seemed to be on the verge of recovery and was gradually inching towards the pre-pandemic-level business. However, the second wave has once again crimped this growth," Renjhen said.
The country's most expensive retail hub –Khan Market in New Delhi - saw a drop of between 8-17 per cent in average monthly rentals in the first quarter of 2021, as against first quarter of 2020. The average monthly rentals hovered between ₹1,000-1,100 per sq ft as on the first quarter of 2021-end.
Likewise, in GK-1 M Block in Delhi, rentals reduced between 13-14 per cent and are presently between ₹300-350 per sq ft.
Brigade Road in Bengaluru saw a drop in rentals between 8-17 per cent in the first quarter of 2021 as against the first quarter of 2020 with current average monthly rentals between INR 250-275 per sq ft. At Indiranagar, the rentals range between INR 225-250 per sq. ft.
In Pune, the average high street monthly rentals dropped 8-20 per cent in the first quarter of 2021 in comparison with Q1 2020.
While M G Road saw rentals maintain the status quo of INR 250-275 per sq. ft, the landlords on J M Road are also holding the rents at INR 275-300 per sq ft despite vacancy.
Kolkata saw a decline in its high street rental rates. In Gariyhaat Rash Bihari Avenue, rental dropped to ₹160- 220 per sq ft in the first quarter of 2021 from ₹250-260 per sq ft in the first quarter of 2020.
In Mumbai, rentals fell 5-10 per cent decline in key markets as of the first quarter of 2021 against the previous year.
The current average monthly rentals at both Kala Ghoda and Fort area are around ₹450-500 per sq ft each, while at Bandra Linking Road it stands at ₹750-900 per sq ft.
However, Hyderabad saw an increase in average high street rental rates in areas like Gachibowli, Banjara Hills, and Jubilee Hills as much as 7-15 per cent during this period.
The average monthly retail rentals in Gachibowli are now at ₹115- 125 per sq ft. Last year, they were INR 100-120 per sq. ft.
In Banjara Hills 12, the average monthly rentals increased from ₹120-130 per sq ft in the first quarter of 2020 to ₹135-140 per sq ft.
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