Retail rental stabilises in Q2: C&W
In what must come as a big relief to retail players in the country, rentals have stablised in eight major cities during the second quarter of 2008.
By PTI |
NEW DELHI: In what must come as a big relief to retail players in the country, rentals have stablised in eight major cities during the second quarter of 2008, according to the latest report by global property consultant Cushman and Wakefield (C&W).
The report said retail rentals stabilised across most main streets and malls in all major cities across the country during this quarter, with the exception of the Rajarhat micro-market of Kolkata and Goregaon in Mumbai, which saw over 50 per cent growth in prime mall rentals over the last quarter.
The stablisation of retail space rentals was a much needed factor, considering the fact that most of the major players have cited the huge costs as one of the biggest hurdles in their expansion.
During April-June quarter about 2 million sq ft of new mall spaces was added across major Indian metropolitan centres compared to anticipated 6 million sq ft.
"The majority of this expected retail space has been staggered to the latter half of the year as well as to next year," C&W said in a statement citing its report.
C&W's overview on the country's retail spaces took stock of NCR, Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata and Pune.
The consultant had pegged the supply of retail space at over 16 million sq ft. However, in the first six months of 2008, the supply has been only about 4 million sq ft and the remaining 12 million sq ft is expected to come up in Q3 and Q4.
The report said retail rentals stabilised across most main streets and malls in all major cities across the country during this quarter, with the exception of the Rajarhat micro-market of Kolkata and Goregaon in Mumbai, which saw over 50 per cent growth in prime mall rentals over the last quarter.
The stablisation of retail space rentals was a much needed factor, considering the fact that most of the major players have cited the huge costs as one of the biggest hurdles in their expansion.
During April-June quarter about 2 million sq ft of new mall spaces was added across major Indian metropolitan centres compared to anticipated 6 million sq ft.
"The majority of this expected retail space has been staggered to the latter half of the year as well as to next year," C&W said in a statement citing its report.
C&W's overview on the country's retail spaces took stock of NCR, Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata and Pune.
The consultant had pegged the supply of retail space at over 16 million sq ft. However, in the first six months of 2008, the supply has been only about 4 million sq ft and the remaining 12 million sq ft is expected to come up in Q3 and Q4.
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