India is amongst the top 10 global markets to record the highest rental increase year on year as per the annual report 'Main Streets Across the World 2013-2014' by global Real Estate consultancy firm, Cushman & Wakefield.
Panjagutta in Hyderabad, recorded the 8th-highest growth in retail rental values globally with a growth of 29% year on year, if the report is anything to go by. South Extension in New Delhi was at 17th position with an annual growth 20% y-o-y.
Kutuzovsky Prospekt in Moscow, Russia recorded the highest rental growth of 42% y-o –y. The report, an annual barometer, ranks the most expensive locations in the top 334 shopping destinations across 64 countries.
Global ranking by rental values
In the global ranking of most expensive retail locations, Khan Market (1,250/sf/mth) in New Delhi emerged at the 28th most expensive in the world, retaining its position as most expensive retail location in India, the report suggested.
India, however, dropped in the global ranking from 26th to 28th position due to the weakening of the rupee against dollar and largely stable rentals with limited increment in rental values in established retailing sectors, said the report. Hong Kong's Causeway Bay remained at top position as the most expensive retail location in the world followed by New York's 5th Avenue (2nd) and Avenue des Champs Elysees in Paris (3rd).
As per the report, Khan Market in New Delhi remained the most expensive retail location with a monthly rental of 1,250/sf/mth, recording a moderate 2% growth over last year and Mumbai's Linking Road (750/sf/mth) emerged as the second-most expensive retail location followed by Connaught Place and South Extension.
Sanjay Dutt, executive managing director of Cushman and Wakefield, said, "New age retailers are focused on providing an experience to their customers moving beyond just merchandise, therefore are showing preference for quality shopping malls that offer the right amenities. However, shopping centre development is limited due to poor cash flow situation and over leveraged conditions of developers. Most investors are also showing limited interest in shopping centres. India's main streets continue their appeal as new retailers are trying to create brand presence in key main streets. Large formats are selectively willing to go for stand alone or built to suit options as well."
(Edited by Joby Puthuparampil Johnson)