Which is one of the following is the costliest retail space in India?
Is it, South Extension in Delhi or Colaba Causeway in Mumbai? Well, none of the two. Not even, Connaught Place in Delhi or Linking Road in Mumbai.
According to “Main Streets Across the World 2006,” an annual report on global retail rents released by well known real estate consultancy firm Cushman & Wakefield (C&W), the honour goes to Khan Market in Delhi.
During the year, beside Khan Market, South Extension, Greater Kailash, South Extension and Connaught Place in Delhi have outpaced hitherto elite high streets of Mumbai, like, Linking Road, Kemps Corner and Colaba Causeway.
Khan Market, which last year was no where in global reckoning, with an average per square foot per month (psfpm) rent of Rs. 700, has been catapulted to 24th rank on the list of most expensive global retail destinations, this year. Most elite high street destinations in Delhi, in fact, have witnessed more than 100% increase in rents over a period of one year. While, rents in South Extension presently ruling at Rs 550 per square foot per month (psfpm) increased by 111.5% over the previous year, rents in Greater Kailash (Rs 525 psfpm) and Connaught Place (Rs 400 psfpm), incresed by 110% and 100%.
In comparison, increases in retail rents in Mumbai were modest. Rents on Linking Road, which based on the rent of Rs 285 psfpm was ranked 41st in the previous year’s global list of most expensive retail destinations, now commands rent of Rs 450 psfpm, an increase of just 58%. Similarly, other areas like Kemps Corner and Colaba Causeway also witnessed modest rise in rents of 28% and 36%, to Rs 275 psfpm and Rs 225 psfpm, respectively.
Although, retail rents in the South are also rising, they are no where near their Northern and Western counterparts. Indiranagar in Bangalore at Rs 115 psfpm against Rs 60 psfpm, last year, has peeped the prime retail locations of M.G. Road and Brigade Road to the post, due to its better infrastructure. While Hyderabad has been on the preferred list of retailers in the recent years, the location choices of retailers remain focused around Begumpet, Banjara Hills Road No. 1 and 10, with rates increasing by 105% at Rs 84 psfpm and stretches closer to Panjagutta Circle showing a growth of 115% at Rs 97 psfpm. In comparison, rents in Adyar and Anna Nagar of Chennai, have grown by 15% and 14% at Rs 75 psfpm and Rs 80 psfpm, respectively.
New York’s Fifth Avenue continues to retain the top position followed by Causeway Bay in Hong Kong in second position and Avenue des Champs Elysees of Paris in third.
A commercial unit on Fifth Avenue, at its most expensive stretch near the junction of 57th Street, at $112.5 psfpm, now costs more than Rs. 5,000 psfpm.