High Street Market Rentals In Top Indian Cities Drop

With COVID-19 wreaking havoc in the country, average monthly rentals across the key high street markets in top cities witnessed some corrections. As per recent data by ANAROCK Research, the iconic retail hub in Delhi - Khan Market - saw average monthly rentals reduce by as much as 8% to 17% in Q1 2021 against Q1 2020.

Likewise, high street markets of Kala Ghoda, Bandra Linking Road and Fort in Mumbai (one of the worst-affected city) also saw high street retail rentals decline anywhere between 5% to 10% during the same period.

Retail sector has been one of the worst affected due to the pandemic since early 2020. With almost zero sales amidst lockdown and thereafter as well for few months, we saw retailers closing their stores or even curtailing their future expansion plans. As a result, the average monthly rentals across the major high street retail markets mostly saw corrections across cities. However, there were also few markets that saw an upward trend. For instance, Hyderabad localities such as Gachibowli, Banjara Hills, Jubilee Hills saw average retail rentals increase in Q1 2021 against Q1 2020.

If we consider trends of the previous two quarters, the retail segment seemed to be on the verge of recovery and was gradually inching towards the pre-pandemic-level business. However, the second wave has once again crimped this growth.

In an overall trend, many of the prominent high streets in the country saw reduced monthly rentals over the last one year.

High Street Rental Trends in Top Cities

Almost zero sales seriously impacted the retail sector during the first lockdown. Soon thereafter, many retailers closed down their stores permanently or a the very least curtailed their expansion plans.

Given this sombre scenario, the average monthly rentals across major high street retail markets began correcting by anywhere between 2% and 30%. However, some markets saw an upward trend in the same period:

Cities	Top High Street Markets	Avg. Monthly rentals (psft) Q1 2021	Avg. Monthly rentals (psft) Q1 2020
Bengaluru	Brigade Rd, Commercial Street, Indiranagar (100 ft.)	250-275 180-200 225-250	300 200 250
Hyderabad	Gachibowli Banjara Hills 12 Jubilee Hills, 36	115-125 135-140 140-150,	100-120 120-130 130-140
Pune	F. C. Road J. M. Road M. G. Road	225-250 275-300 250-275	250-300 300-350 250-275
Kolkata	Camac Street Gariyhaat Rash Bihari Avenue Park Street	180-200 160-220 250-300	200-220 250-260 250-280
Mumbai	Bandra Linking Road Fort Kala Ghoda	750-900 450-500 450-500	800-1000 475-525 475-525
New Delhi	Connaught Place GK 1, M Block Market Khan Market	800-1200 300-350 1000-1100	900 350-400 1200

Source: ANAROCK Research