HomeNewsMonthly rent in Delhi-NCR's high street retail locations rises   

Monthly rent in Delhi-NCR’s high street retail locations rises   

According to Cushman & Wakefield, monthly rentals in Delhi-NCR’s high street retail locations, including Khan Market and Connaught Place, increased by up to 5.6 per cent during January-March period as compared to the previous quarter on better demand for space from retailers.

The property consultant Cushman & Wakefield has also highlighted that footfalls in shopping malls of Delhi-NCR have reached 80-85 per cent of the pre-COVID level and rentals remained stable during the first quarter of this calendar year.

”Main streets including Khan Market, Connaught Place and DLF Galleria witnessed a 3–5 per cent q-o-q (quarter-on-quarter) growth in rents during the quarter on the back of strong demand and high retailer preference for these areas,” the report said. Main streets like Greater Kailash and Karol Bagh in Delhi also witnessed a slight increase in rents on a quarterly comparison.

The consultant expects further appreciation across major main street locations in the city.

In case of shopping malls, rents stabilized by the end of March quarter as business activity resumed normally, with no further extension of relaxations that were given to retailers earlier in order to weather the pandemic, the report said. However, brief rental relaxations were given to retailers during January with operations being impacted by the third COVID wave.

According to the report, transactions with staggered rentals with a 10-15 per cent relaxation during the first year and market average rentals in the second year are increasingly becoming a norm in the city. Majority of the new leasing transactions are being structured with payment terms that accommodate retailers with some waivers during the first year of operation.

The consultant said that Delhi-NCR’s retail leasing was led by food & beverage, fashion & apparel segments during January-March, 2022.

The consultant pointed out that no new mall supply was added to the city’s mall inventory which was recorded at 26.5 million square feet. The vacancy in malls stood at 15.7 per cent at the end of Q1. Meanwhile, new mall space of around 0.84 million square feet across Gurugram and Noida is scheduled for completion by the end of 2022.

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