High street rentals mark steep hike, no takers for mall space
The slump in the real estate market across the country notwithstanding, the city showed a sharp rise in rentals at high streets such as the Colaba Causeway and Linking Road, stated a recent survey, Naresh Kamath reports.mumbai Updated: Dec 22, 2012 02:39 IST
The slump in the real estate market across the country notwithstanding, the city showed a sharp rise in rentals at high streets such as the Colaba Causeway and Linking Road, stated a recent survey.
According to the findings of the real estate consultancy firm, Cushman & Wakefield, a 1,000 sqft shop at Colaba fetches a rent of Rs7 lakh a month, a 56% rise from the Rs3.08 lakh rent for the same space last year. Also, the rental for a shop with the same area at Linking Road has gone up from Rs6.46 lakh last year to Rs8.5 lakh.
Jaideep Wahi, director, retail services, Cushman & Wakefield, said: “Quality is the key concern for most retailers, especially the international brands. Good connectivity to prime areas in the city with ample infrastructural support helps in seeking good rentals for spaces at main streets.”
High Street at Lokhandwala in Andheri now commands a rent of Rs3.10 lakh, a 3% hike from last year’s Rs3.07 lakh.
According to the survey, the steep hike at Colaba Causeway could be attributed to the shortage of quality retail space and the interest shown by apparel and food and beverage brands. The rise in rentals at Linking Road is a result of the increasing interest of domestic and international brands in setting up their flagship stores.
However, the real estate scenario of malls is not very encouraging. Rents at Lower Parel malls continue to hover at Rs4.80 lakh for a 1,000sqft outlet, the same as last year. Malls at Goregoan too continue to charge rentals similar to last year. Real estate expert Ajay Chaturvedi said that the miscalculation of the builders is to be blamed for the empty retail spaces in malls.