In the latest report released by Cushman & Wakefield India, the retail real estate market received a fresh mall supply of approximately 1.94 million sq. ft. (msf) in Q1 2012 (quarter ending March 2012). Of the eight major cities across India, Bangalore led the supply scenario with a total infusion of 1.2 msf. Jaideep Wahi, Director, Retail Services, Cushman & Wakefield commented, “The first quarter of the year has been positive for the retail market and indeed over the last one year. While, the mall space has been moving cautiously to ensure that demand to supply ratio remains stable to maintain rental values, the High Streets continue to see increased demand and interest from a range of retailers.”
Rental values across most mall destinations within these cities remained largely stable, except for Ahmedabad, Bangalore and Hyderabad where mall rentals have seen a growth over the previous quarter in the range of 15-30%. Vastrapur in Ahmedabad recorded the highest growth in Mall rents at 33% over last quarter mostly owing to renewals of existing tenants at a higher value. NCR’s retail market was largely driven by leasing activities on the High Streets where retailers showed greater interest. South Extension I & II (9.10%), Karol Bagh (7.7%) and Connaught Place (4%) registered a rise in rental values on account of enquiries from retailers and some significant leasing activities.