Rentals: On a high in the South
The Hindu : Bangalore, Hyderabad and Chennai have emerged as the top retail locations to have witnessed high street rental growth across India, according to a Cushman & Wakefield survey. Banjara Hills in Hyderabad was the highest gainer in India with an annual rental growth of 114 per cent over last year.
Khader Nawaz Khan Road in Nugambakkam, Chennai, also witnessed high rental growth of 106 per cent making it the second highest riser while S.P. Road in Begumpet, Hyderabad. and Koramangala 80 Feet Road in Bangalore were among the highest risers with increase of 100 per cent and 92 per cent respectively.
Rajneesh Mahajan, National Head, Retail, Cushman & Wakefield India, says “The economic growth in southern India has provided a large consumer base with increased spending power. The retailers are enjoying better revenues in these markets not only from the existing retail destinations but also in the suburban locations.
As the store revenues become comparable to Delhi and Mumbai the demand for retail real estate would push the prices closer to these two markets.”
International real estate consultants opine that rental market largely defines the affordability characteristics and this is in tune with Hyderabad and Bangalore with the IT salaries dictating the real estate trends with respect to housing.
In Chennai, the factors that have helped Khader Nawaz Khan Road gain so much on rentals are rise in branded wear showrooms, a mushroom growth in lifestyle malls and a steep difference in people’s approach to home-décor shopping.
…More
