Mall rentals across all the Metros and Cosmos have nosedived in the past 12 months and vacancies have increased by 15%. Retailers are looking forward to different Revenue models – minimum guarantee and revenue sharing.
Ahmadabad Malls have seen the highest fall in rentals after a record run-up of 30-40% YoY in 2006 and 2007. Mall rentals on Sarkhej Gandhinagar highway was down 64% YoY while Kankaria Lake saw a drop of 60%. Poor geographical distribution of Malls in the city is cited as the main reason. Malls should have spread across the city with areas of upper class residential catchment.
Malls in Bangalore have witnessed rental fall between 10-20% while Prime Street Rentals have fallen of the cliff by as much as 50% on 100ft road in Indiranagar, Kormangala and Vittal Mallya Road.
In Chennai, Adyar Main Road saw the highest fall in rental values by as much as 40% followed by Anna Nagar 2nd Avenue – 35% and Cathedral Road – RK Salai 33% YoY.
In Delhi NCR, Greater Kailash I, M Block saw a drop of 55% followed by Basant Lok, Karol Bagh, South Ex all between 40-45% YoY. Gurgaon and West Delhi Malls were hit by fall in rental values of upto 42%. Market outlook is stable over the next 6 months.
Mumbai’s Goregaon, Linking Road, Breach Candy and Colaba have witnessed the highest drop of over 55%. Vashi, Lower Parel and Ghatkopar saw a drop of over 30% in rental values.
In Hyderabad, Banjara Hills and Himayathnagar retail rentals were down 40% and in Kolkata, Rajarhat witnessed a similar drop while South Kolkata and Elgin Road saw a drop of 25%.
We will publish a more detailed study from each individual cities soon.