Half of India’s 10 most expensive retail micro-markets are in the Delhi-National Capital Region, with Khan Market remaining the costliest location to rent a shop, a Cushman & Wakefield report said.
In the global ranking, however, Khan Market slipped two spots to 28.
New York’s Upper 5th Avenue continues to remain the world’s most expensive retail location, followed by Causeway Bay in Hong Kong and Avenue des Champs Élysées in Paris.
“Despite witnessing stable rental values (Rs 1,250 per sq ft per month), Khan Market’s position slipped two places due to marginal increases in rentals of other countries,” the report said.
Connaught Place in Delhi grabbed the second spot in India, demanding rentals of Rs 850 per sq ft, followed by DLF Galleria in Gurgaon at Rs 800. South Extension was at the fifth spot at Rs 700, while Greater Kailash I emerged as the eighth most expensive, where the rent for 1 sq ft was Rs 460 a month.
Mumbai had three locations among the top 10. Linking Road was the fourth most expensive main street in India, with rentals of Rs 760 a month, while Colaba Causeway was sixth at Rs 625 and Kemps Corner at the 10th spot with Rs 425.
Kolkata’s Park Street (7th) and Camac Street (9th) were the other two on the top 10 list.
India’s retail real estate is going through rapid changes with consumer behaviour evolving faster than the sector can adapt to. The game-changing phenomenon has been the rapid forward movement by ecommerce, which is challenging the existing brick and mortar format, said Anshul Jain, managing director-India, Cushman & Wakefield.
Jain expects demonetisation to hurt the ultra-luxury retail in the long term.
Raj Bhavan Road in Hyderabad continued to be the most affordable retail location in Asia Pacific, with a rental of Rs 90 per sq ft per month. Marathahalli Junction in Bengaluru witnessed the strongest rental growth of 28%, with monthly rentals recorded at Rs 160 per sq ft.