High-Street Retail Rents Surge Ahead of Malls in India's Major Cities
High-street rents outpace malls as brands chase visibility
Mint
Image: Mint
High-street retail rents in India's top cities are increasing faster than mall leases, driven by brands seeking visibility and foot traffic. The Anarock Group's report indicates that while premium malls face constrained vacancy levels, brands are increasingly opting for high-street locations for expansion.
- 01High-street rents are rising faster than mall rents in major Indian cities.
- 02Brands are prioritizing visibility and daily footfall over traditional mall spaces.
- 03Delhi NCR is expected to see significant new retail space development by 2031.
- 04Demand for retail space remains steady, with fashion and food sectors leading leasing activity.
- 05Malls are evolving into destinations with a focus on food and entertainment.
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A recent report by the Anarock Group highlights a trend in India's retail sector where high-street rents are outpacing mall leases as brands seek greater visibility and foot traffic. The report notes that while premium malls have stable rental rates, high-street locations are becoming increasingly attractive due to limited availability in malls. Anuj Kejriwal, CEO of retail for EMEA at Anarock, pointed out that many brands in fashion, luxury, and food sectors are turning to high streets for expansion. Despite this shift, Rajneesh Mahajan, CEO of Inorbit Malls, maintains that mall leasing remains healthy, with steady year-on-year rental growth of 8-9% in certain categories. The report anticipates significant new retail space development, particularly in the Delhi NCR, Mumbai, Pune, and Hyderabad regions, with over 22 million sq. ft expected in NCR alone by 2031. The evolving landscape of retail is also marked by a growing emphasis on food and entertainment within malls, as well as an increase in direct-to-consumer brands establishing physical stores.
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The shift towards high-street locations may lead to increased competition among retailers and influence rental prices, affecting both consumers and businesses.
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