The rapidly changing face of Bangalore’s high streets is reflecting in the rentals on those streets. Amongst high streets across India, Indiranagar 100 ft Road saw the second highest growth, of 21.6%, in rental values in June 2011 over the same month last year, a recent Cushman & Wakefield report says. The street had an average rental of Rs 152 per sft per month.
Commercial Street took the fifth spot, with a growth in rental of 18.5% and commanding a rental of Rs 320 per sft. Brigade Road was at No. 8, with a rental appreciation of 10% to Rs 440 per sft.
New Delhi’s Greater Kailash–I topped with a 22% jump in rental values. The location is surrounded by premium residential catchments with a large concentration of HNIs.
Jaideep Wahi, director for retail services in Cushman & Wakefield India, said retailer expansion in India is driven primarily by internal consumption and quality retail supply being provided in major cities. “Growth in the luxury sector has been a rising trend with the market growing at 13%. Both international and Indian brands regard India as an expanding luxury market which could become a significant part of their portfolio going forward,” he said.
The survey, which looked at high streets across the world, found that the fastest growing rentals were in Wangfujing in Beijing, which recorded an increase of 109.5%. New York’s Fifth Avenue, where rents rose by 21.6%, retained its spot as the most expensive shopping street in the world for the tenth year running. Causeway Bay in Hong Kong remained in second place and Tokyo’s Ginza in third. India is the 21st most expensive retail location in the world, says the report.
On Indiranagar 100 ft road, big brands boast of clocking some of their highest sales per square foot. US Polo, which rode into India by entering into a licensing agreement with Arvind Mills, does sales of Rs 90 per sft on an average every day at its Indiranagar store, compared to the industry average of Rs 30-35 per sft. “The store doesn’t have a like-to-like comparison as it’s only a year old. But this stretch is emerging as a shopping boulevard with a nice frontage and a rich catchment area comprising of Cambridge Layout, Defence Colony and Jeevanbhimanagar,” said Alok Dubey, COO, Arvind Lifestyle Brands.
The company has seven other group stores on this stretch including Arrow, Lee and Flying Machine. The rentals for the Arrow store (ground floor), has increased from Rs 60 per sft five years back to about Rs 150 now.
The 4,500-sft Van Heusen store on this stretch has the highest turnover of Rs 4 crore compared to any of its other stores in the city. “When we launched the store some three years ago, the rentals were at Rs 100 per sft. Today, it’s Rs 130 per sft. There is a shift in the high street experience. Till recently, Brigade Road attracted a lot of attention. But 100 ft road has emerged as a premium shopping destination with a good ambiance and fine dining experiences,” said Ajay Ramachandran, brand head at Van Heusen.
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