Khan Market in New Delhi the most costly at 950 rupees psf a month
IN NEW DELHI
INDIA has been ranked the 16th most expensive global retail ‘high street destination’ by a prominent real estate consultant.
According to the report Main Streets Across the World 2007 by Cushman & Wakefield, Khan Market, located near the famous India Gate in New Delhi, is the most expensive retail location in India with rentals of 950 rupees (S$35) per square foot (psf) a month.
Rents at Khan Market, known for its book, music, grocery stores and popular restaurants that are patronised by the diplomatic community in the city, have witnessed an annual growth of 35.7 per cent over the same period last year.
‘Khan Market is the biggest riser in the ranking of the world’s most expensive shopping locations in terms of retail rents, moving up eight places from last year’s 24th position,’ the report says.
New York’s Fifth Avenue held its position as the world’s most expensive shopping destination followed by Hong Kong’s Causeway Bay and Avenue des Champs Elysees in Paris.
‘Retail is going through a revolution in India, although a part of the increase in rents is due to lack of high quality space in the right location,’ Cushman & Wakefield India head (retail) Rajneesh Mahajan said.
India also figures among the world’s top 10 locations that have recorded the biggest rental increase in local currency terms.
Connaught Place, the main commercial and shopping hub of Delhi, is the biggest gainer in Asia and globally second only to Chicago’s East Oak Street, with an annual rise of 87.5 per cent.
Kemp’s Corner in Mumbai has also clocked very high rental growth of over 78 per cent, making it the fourth highest riser.
The rental at Connaught Place was 750 rupees psf a month and Kemp’s Corner was 490 rupees psf a month.
Greater Kailash in South Delhi and Fort/Fountain and Colaba in Mumbai also saw steep rises in rent of over 55 per cent for the first two and over 50 per cent for the third.
High rental in the above-mentioned locations is also attributed to the very narrow scope for expansion, as these areas are located in the heart of the various cities.
However, suburbs such as Noida or Gurgaon, adjoining Delhi, offer very good and cheaper retail options, as space for expansion is not an issue.
Source: Business Times 23 Nov 07