Monthly rentals at Khan Market stood at Rs 1,250 per sq ft as of June, 2013, up by just 2 per cent from the year-ago period, according to global property consultant Cushman and Wakefield’s (C&W) report ‘Main Streets Across the World 2013’.
When it comes to rental appreciation, Panjagutta in Hyderabad with 29 per cent growth is placed 8th in the list of global rental movement ranking of 2013. South Extension in New Delhi is at 17th position with an annual rental growth of 20 per cent. Kutuzovsky Prospekt in Moscow recorded the highest rental growth of 42 per cent.
“In the global ranking of most expensive retail locations, Khan Market in New Delhi emerged as the 28th most expensive in the world, retaining its position as most expensive retail location in India,” C&W said. “India (Khan Market) however, dropped in the global ranking from 26th to 28th position due to the weakening of the Indian rupee against US dollar and largely stable rentals with limited increment in rental values in established retailing sectors,” it added.
Hong Kong’s Causeway Bay has emerged as the world’s most expensive retail location, followed by New York’s 5th Avenue, as per the report that ranks the most expensive locations in the top 334 shopping destinations across 64 countries.
Avenue des Champs Elysees in Paris is ranked third, while New Bond Street in London, Ginza in Tokyo are at 4th and 5th places respectively. Khan Market witnessed high demand from retailers but due to limited availability and transactions, rental values have only seen a marginal increase, it said.
Commenting on the report, C&W Executive Managing Director South Asia Sanjay Dutt said: “While retail rentals globally registered a slower growth of 3.2 per cent as compared to previous year on account of slowdown in economic uncertainties in the leading markets, the Asian markets saw a better average of rental increase at 4.5 per cent in the same period.”
The economic risk remains for 2014, but conditions are expected to steadily improve across most markets, he said. “The retailers’ push towards the best and most sought after locations will continue. However, limited supply and higher rental costs will create obstacles for some brands, leading a number of retailers to look at alternative locations in close proximity to the main thoroughfares,” he added.
On Indian retail locations, Mumbai’s Linking Road (Rs 750/sq ft/month) emerged as the second most expensive retail location in the country despite a correction of 11.8 per cent in rental over last year. Connaught Place and South Extension are third and fourth positions with a rental of Rs 725 per sq ft in a month. Bangalore’s Brigade road and Mumbai’s Linking Road stood at 6th and 11th positions respectively in the list of world’s top 15 markets to saw the sharpest retail rental decline.