India is the 16th most expensive retail high streets in the world, with Khan Market in New Delhi, the most expensive retail destination in the country. The country's ranking has moved up from the previous year's 24th position, while Khan Market in New Delhi is the most expensive retail destination in India.
The country is also among the worlds' top 10 locations that witnessed highest rental increase in local currency terms, according to Cushman & Wakefield's (global commercial real estate services firm) annual global report 'Main Streets Across the World 2007 (MSATW)'.
New York's Fifth Avenue retained its title as the world's most expensive shopping destination followed by Hong Kong's Causeway Bay and Avenue des Champs Elysées in Paris.
"Retail is going through a revolution in India, although part of the increase in rents is due to the lack of high-quality space in the right location. This is in strong contrast to other emerging markets such as China, where less restrictive legislation has meant more construction of retail outlets and retail chains accounting for a much larger share of total sales," Cushman & Wakefield India National Head (Retail) said in a statement.
Connaught Place in Delhi was the highest gainer in Asia and second only to Chicago's East Oak Street across the world, with an annual growth of 87.5 per cent. Kemp's Corner in Mumbai has also witnessed high rental growth of 78.2 per cent making it the fourth highest riser of rental growth in the world.
Greater Kailash in Delhi and Fort/Fountain and Colaba in Mumbai were also among the highest rent rises recorded with increase of 57.1 per cent, 55.2 per cent and 51.1 per cent, respectively.
Mumbai and Delhi maintained their position as the best markets for retailers across categories and witness consistent demand from retailers due to the double digit growth in revenues achieved across brands within the high street markets.
Prime high streets such as Khan market, Greater Kailash, South Extension and CP in Delhi and Linking Road, Kemp corner in Mumbai provide better revenue for retailers and therefore will continue to be viewed favourably by them despite the rapid growth in mall development across the cities.
Rental growth across Asia as a whole amounted to a very strong 23.8 per cent.
Sebastian Skiff, Head of Retail Services in Asia Pacific said: "All countries in the region are experiencing rental uplift. Of particular note is the robust performance in Tokyo driven largely by lack of supply. India saw particularly strong growth with rents nationally up 53.5 per cent. Australia, Korea, Singapore and Hong Kong also saw solid growth from already relatively high bases. Retailer demand, fueled by a healthy consumer spending in the region, continues to be very active, whilst store front opportunities on the main high streets and better malls are limited." |
