Multiple forces work together for the development of new retail streets. Emerging destinations apparently witness unique synthesis of growth factors and limitations. Cushman and Wakefield in its study attempted to identify most promising retail centres in seven cities.
In Delhi/NCR region, Ashirwad Chowk and Sohna Road emerged as most promising retail destinations, according to the study. The Cushman and Wakefield study attempted to outline multiple market forces, which have shaped the current retail landscape in the emerging main streets.
Dwarka (Ashirwad Chowk)
Located in South-west Delhi, Dwaraka is in close proximity to both Delhi and Gurgaon. Planned development and its strategic position have been prime driving force behind the emergence of Ashirwad Chowk as retail main street.
The sattelite city is well endowed with high quality infrastructure like wide roads, metro stations, educational institutions and several branded hotel chains. These factors helped this region to transform into a cosmopolitan hub.
'Since Ashirwad Chowk is located at the intersection of 6 streets, connecting Sectors 4, 5, 11 and 12, it also witnesses footfalls from nearby Sectors such as Sectors 6, 9, 10 and 13 amongst others', says the C&W report.
The strongest driving force behind Ashirwad Chowk is its proximity to Business District. However, availability of quality retail space is a real problem and it could act as a major bottleck.
In addition, good quality urban sprawl is also helping this region with huge potential. In terms of accessibility, this area can be rated 'average'.
According to C&W data, Ashirwad Chowk has 77% penetration of Domestic brands, whereas foreign brands constitute only 23%. Given the cosmopolitan nature of demography foreign brands have great oppurtunity to boost its presence in this area.
Dwarka (Ashirwad Chowk) is the only emerging retail location which has extremely high rental.
Sohna Road, Gurgaon
Gurgaon is expanding horizontly with huge IT hubs and rapidly growing population. Sohna Road is witnessing meteoric and swift development of new residential projects.
Approximately 10,000 housing units, at present, are under construction in order to meet housing demad. The demography of this area largely consisted of mid-income population.
Decent infrastructure such as schools and hospitals located between Netaji Subhash Chandra Chowk and the Golf Course Extension Road crossing making it a most sought after residential area.
'Due to lower rentals on this main street compared to other prominent retail destinations in Gurgaon, this main street has attracted many retailers belonging to apparels, fitness and F&B segments', says the C&W report.
Reconstruction and widening of roads have aslo contributed to retail growth on the main street.
The strongest driving force behind Sohna Road is the nature of urban sprowl. In addition, proximity to business district is a big positive for this area.
As so far availability of quality retail is concerned, this area mave rated 'average'. But, accessibility is a major area of concern as it needs big overhaul.
According to C&W data, Sohna Road has 92% penetration of Domestic brands, whereas foreign brands constitute only 8%. Presence of middle income class in this region offers foreign brands a great chance to make in-roads in this area.
In terms of rent, this area offers reasonable conditions. However, growth of rental is a bit on higher side.