Globally, the biggest fall in rents was in Mumbai with Colaba Causeway falling 63.5%, Linking Road Bandra by 63% and Kemps Corner by 60%. In the Americas, Rio de Janeiro’s Sao Conrado Fashion Mall fell 53.4% whilst in Europe, Bucharest’s Calea Victoriei fell 48.1%. This was revealed by a survey conducted by Cushman & Wakefield. Khan Market (New Delhi), the most expensive retail destination in India slipped from 17th position in 2008 to its old ranking of the year 2006
Colaba Causeway in Mumbai had witnessed significant increase during the growth period (over 180% in 2007-2008); however retailers were not able to sustain operations in an environment of high rentals and reduced consumer purchases which led to rental negotiations and downward revision of values in the market.
While rents in prime Indian high streets corrected in the wide range of 17% to 63% over last year which is much higher than the Asia average of 15%, there were some markets like Park Street (- 8.6%) and Camac Street (0%) in Kolkata as well as Brigade Road in Bangalore (0%) that witnessed only marginal decline.
In comparison, the change in rentals over the last quarter recorded a much slower rate of correction. Main streets in Pune, Mumbai & NCR continued to correct further with Basant Lok (- 29%) and Kemps Corner (- 24%) among the highest drops; Vashi and Thane in Mumbai as well as Koregaon Park in Pune, witnessed stable rents over the previous quarter. Mid-year values in Kolkata, south Hyderabad and Chennai witnessed stabilisation across majority of locations. Brigade Road and Commercial Street in Bangalore that reflected stable rents over last year, witnessed an increase of 17% and 11% respectively.
