A study by Anarock Retail of average rentals of iconic retail hubs reveals a 17 per cent drop in rents for India’s most expensive retail real estate, the Khan Market in New Delhi, and upto a 10 per cent decline for Bandra-Linking Road and Fort areas in Mumbai. Prolonged lockdowns and local restrictions, combined with reluctance of the public to go to physical stores and malls, led to brands cutting down their physical retail presence, says the report.
The only major metro that showed an upward trend was Hyderabad, where areas like Gachibowli, Banjara Hills and Jubilee Hills saw an uptick. According to Anarock, the average monthly rentals across major high street retail markets corrected between 2 and 30 per cent. The average monthly rentals at Khan Market declined from Rs 1,200 per sq. ft. last year to as low as Rs 1,000 per sq. ft. Rates in other posh Delhi hubs like GK-1 M Block market dropped from Rs 350-400 per sq. ft. to Rs 300-350 per sq. ft.
Rates in Bandra, Mumbai fell from Rs 1,000 to Rs 750-900 sq. ft. while in Park Street and Camac Street, Kolkata, they fell marginally. The decline was more acute at Garihat Rash Bihari Avenue, where rates fell from as high as Rs 260 to as low as Rs 160.