With COVID-19 wreaking havoc in the country, average monthly rentals across the key high street markets in top cities witnessed some corrections. As per recent data by ANAROCK Research, the iconic retail hub in Delhi – Khan Market – saw average monthly rentals reduce by as much as 8% to 17% in Q1 2021 against Q1 2020.
Likewise, high street markets of Kala Ghoda, Bandra Linking Road and Fort in Mumbai (one of the worst-affected city) also saw high street retail rentals decline anywhere between 5% to 10% during the same period.
Retail sector has been one of the worst affected due to the pandemic since early 2020. With almost zero sales amidst lockdown and thereafter as well for few months, we saw retailers closing their stores or even curtailing their future expansion plans. As a result, the average monthly rentals across the major high street retail markets mostly saw corrections across cities. However, there were also few markets that saw an upward trend. For instance, Hyderabad localities such as Gachibowli, Banjara Hills, Jubilee Hills saw average retail rentals increase in Q1 2021 against Q1 2020.
If we consider trends of the previous two quarters, the retail segment seemed to be on the verge of recovery and was gradually inching towards the pre-pandemic-level business. However, the second wave has once again crimped this growth.
In an overall trend, many of the prominent high streets in the country saw reduced monthly rentals over the last one year.
High Street Rental Trends in Top Cities
Almost zero sales seriously impacted the retail sector during the first lockdown. Soon thereafter, many retailers closed down their stores permanently or a the very least curtailed their expansion plans.
Given this sombre scenario, the average monthly rentals across major high street retail markets began correcting by anywhere between 2% and 30%. However, some markets saw an upward trend in the same period:
|Cities||Top High Street Markets||Avg. Monthly rentals (psft) Q1 2021||Avg. Monthly rentals (psft) Q1 2020|
|Indiranagar (100 ft.)||225-250||250|
|Banjara Hills, 12||135-140||120-130|
|Jubilee Hills, 36||140-150||130-140|
|Pune||F. C. Road||225-250||250-300|
|J. M. Road||275-300||300-350|
|M. G. Road||250-275||250-275|
|Gariyhaat Rash Bihari Avenue||160-220||250-260|
|Mumbai||Bandra Linking Road||750-900||800-1000|
|New Delhi||Connaught Place||800-1200||900|
|GK 1, M Block Market||300-350||350-400|
By Pankaj Renjhen, COO & Joint MD – ANAROCK Retail