NEW DELHI: Property rental costs in main markets in India’s main cities have seen a major correction because the Covid-19 pandemic continues to wreak havoc on the nation’s economic system.
India’s costliest retail hub Khan Market (Delhi), in accordance with actual property guide Anarock, noticed common month-to-month rents decline by 8-17% within the first quarter of 2021 (January-March) in comparison with the primary quarter 2020. Common month-to-month rents ranged from Rs 1,000 to Rs 1,100 per sq. meter. ft. as on the finish of the primary quarter of 2021 towards Rs 1200 a yr in the past.
Likewise, Mumbai has seen rental charges drop by round 5-10% in main markets. Present common month-to-month rents in each Kala Ghoda and Fort space are round Rs 450-500 per sq. foot every, whereas in Bandra Linking Street it’s round Rs 750-900 per sq. foot in comparison with Rs 800-1000 final yr.
Brigade Street in Bengaluru has seen a drop in leases of between 8 and 17% within the first quarter of 2021 in comparison with the primary quarter of 2020 with present common month-to-month rents between Rs 250-275 per sq. foot. In Indiranagar, leases differ between 225 and 250 Rs per sq. meter. . ft.
“The retail sector has been one of many hardest hit by the pandemic because the begin of 2020. With gross sales nearing zero through the lockdown interval and afterwards for a number of months, we have now seen retailers shut their shops. and even in the reduction of on their future enlargement plans. Consequently, common month-to-month rents in main excessive road retail markets have primarily been corrected in cities, ”mentioned Pankaj Renjhen, Managing Director and Joint Managing Director, ANAROCK Retail.
Nonetheless, a number of markets have seen an upward development. Hyderabad has seen a rise in common important road rental charges in areas like Gachibowli, Banjara Hills and Jubilee Hills by 7-15% throughout this era. Common month-to-month retail rents in Gachibowli at the moment are 115-125 rupees in comparison with 100-120 rupees per sq. foot final yr. At Banjara Hills 12, common month-to-month rents have elevated from Rs 120 to Rs 130 per sq. foot within the first quarter of 2020 to between Rs 135 and Rs 140 per sq. foot. “The retail phase appeared poised to get well … Nonetheless, this wave has as soon as once more dampened development,” he mentioned.