Monthly leases in Delhi-NCR’s high street retail locations, together with Khan Market and Connaught Place, elevated by up to 5.6 per cent throughout January-March interval as in contrast to the earlier quarter on higher demand for house from retailers, in accordance to Cushman & Wakefield.
In its report ‘Marketbeat Delhi-NCR Retail Q1, 2022’, property advisor Cushman & Wakefield highlighted that footfalls in procuring malls of Delhi-NCR have reached 80-85 per cent of the pre-COVID degree and leases remained steady through the first quarter of this calendar year.
“Main streets including Khan Market, Connaught Place and DLF Galleria witnessed a 3–5 per cent q-o-q (quarter-on-quarter) growth in rents during the quarter on the back of strong demand and high retailer preference for these areas,” the report mentioned.
Main streets like Greater Kailash and Karol Bagh in Delhi additionally witnessed a slight improve in rents on a quarterly comparability.
The advisor expects additional appreciation throughout main important street locations in town.
As per the information, leases in Sector 18, Noida elevated 5.6 per cent to a median Rs 190 per sq. ft monthly throughout January-March 2022 as towards the earlier quarter.
Rentals in Connaught Place rose 5 per cent to Rs 1,050 per sq. ft, whereas Khan Market noticed 3.7 per cent appreciation at Rs 1,400 per sq. ft a month through the interval beneath review.
Greater Kailash-1 M block and Karol bagh witnessed a slight improve of 1.3 per cent in leases at Rs 380 per sq. ft and Rs 390 per sq. ft, respectively.
DLF Galleria in Gurugram too noticed leases improve by 3.7 per cent to Rs 700 per sq. ft a month. Rentals in Sector 29, Gurugram remained steady at Rs 180 per sq. ft.
Rentals in South Extension and Lajpat Nagar remained steady at Rs 700 per sq. ft and Rs 250 per sq. ft, respectively.
Rentals in Punjabi Bagh and Rajouri Garden too have been steady at Rs 225 per sq. ft a month.
No improve was seen in Kamla Nagar, which instructions a month-to-month leases of Rs 380 per sq. ft.
Talking about procuring malls, Cushman & Wakefield mentioned that “rents stabilized by the end of March quarter as business activity resumed normally, with no further extension of relaxations that were given to retailers earlier in order to weather the pandemic.” However, transient rental relaxations got to retailers throughout January with operations being impacted by the third COVID wave.
“Transactions with staggered rentals with a 10-15 per cent relaxation during the first year and market average rentals in the second year are increasingly becoming a norm in the city,” the report mentioned.
Majority of the brand new leasing transactions are being structured with cost phrases that accommodate retailers with some waivers through the first year of operation.
The advisor mentioned that Delhi-NCR’s retail leasing was led by meals & beverage, style & attire segments throughout January-March, 2022.
“Retailer churn drove majority of the leasing exercise in Delhi-NCR through the first quarter.
New leases and retailer openings in town’s malls have been recorded at 0.25 million sq. ft in Q1, highlighted by retailer relocations and churn exercise,” the report mentioned.
Main streets recorded new leases and retailer openings of shut to 0.04 million sq. ft with distinguished markets together with Khan Market, Kamla Nagar, Greater Kailash, Karol Bagh witnessing traction.
Key important streets like Khan Market and Connaught Place continued to have restricted obtainable areas amidst large retailer demand for these locations throughout a number of segments.
Food & beverage was an vital demand driver for retail areas in Q1 with new retailer openings by Gur Chini, Sticky Rice, Moti Mahal, Spaghetti Kitchen amongst others.
“International QSR (quick service restaurants) chains planning to foray in the country are eyeing Delhi-NCR as the gateway city to mark their India entry to leverage from the growing preference for global cuisines,” the report mentioned.
Retailers like Pantaloons, Tasva (by Aditya Birla), Steve Madden, Hugo Boss have been energetic in the style & attire section through the first quarter.
“Large retailers with deep pockets have leveraged from the churn activity to expand their presence and open new outlets in the city,” the advisor mentioned.
Pet care & grooming, and electrical autos are another segments with energetic house necessities for brand spanking new shops in addition to growth, particularly in submarkets together with South Delhi and Gurugram.
“Mall footfalls have reached 80–85 per cent of the pre-COVID levels across all prominent malls in Delhi-NCR which bodes well for retailers,” it mentioned.
The advisor identified that no new mall provide was added to town’s mall stock which was recorded at 26.5 million sq. ft. The emptiness in malls stood at 15.7 per cent on the finish of Q1.
New mall house of round 0.84 million sq. ft throughout Gurugram and Noida is scheduled for completion by the top of 2022, mentioned Cushman & Wakefield.