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Khan Market rentals breach pre-Covid levels, hit record Rs 1.5k/sq ft a month

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Rentals at Delhi’s Khan Market – the country’s most expensive retail real estate – have breached the pre-pandemic levels for the first time to hit a record high of Rs 1,500 per square feet per month.

This is almost double than the costliest retail location of Mumbai and about four times that of Bengaluru, industry executives said.

Monthly rentals at Khan Market had reached Rs 1,400 per sq ft in 2019 but fell to Rs 1,200 in 2020 following the outbreak of Covid-19.

Monthly rentals at Mumbai’s popular high street destinations such as Linking Road, Breach Candy and Colaba are in the range of Rs 600-900 per sq ft, which is still lower than the 2019 level, according to an analysis by commercial real estate services firm Cushman & Wakefield.

In Bengaluru, retail hubs such as Brigade Road, Commercial Street and Vittal Mallya Road in central, Indiranagar in the east and Koramangala, HSR Layout and Jayanagar in south have crossed the pre-Covid levels at between Rs 200-400 per sq ft a month, it said.

“The retail sector has not only witnessed a great rebound post Covid, but also a dearth of quality space in prominent grade retail malls,” said Vibhor Jain, managing director, North India, of Cushman & Wakefield.He said many brands, particularly in fashion and food and beverages (F&B) sectors, have been scouting for space in prominent high street locations that offer quality spaces. “The rentals are further expected to go up with the supply being limited in prominent grade retail malls,” Jain said. In Bengaluru, high streets rental increased by up to 15% year on year in the first quarter of 2023-24, while in Delhi and Gurgaon rates increased by up to 33% during the same period.

In Mumbai, city-wide mall rentals witnessed an average 2-7% rise on a quarter-on-quarter basis, on the back of fresh demand and term renewals. Prominent main streets in prime locations have also witnessed a rental appreciation of 1-6% during this quarter on the back of robust retail space demand, which is expected to continue, Cushman & Wakefield said in a report.

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