Koramangala's rents go through the roof

Koramangala's 80 Feet Road has witnessed the highest appreciation of 92 per cent in Bangalore's retail realty rentals. A square foot of space here has been quoted at Rs 125 per square foot per month compared to Rs 65 a year ago.

Commercial Street and Indiranagar's 100 feet Road in the city were the other retail destinations which saw a price appreciation of 24 per cent and 20 per cent respectively. Rentals in Commercial Street were Rs 235 per square feet per month as against Rs 190. On Indiranagar's 100 feet road it is Rs 240 per square feet per month as against Rs 200.

"The sudden spike in rents is attributed to improved infrastructure including parking facilities and stronger growth for space in Indiranagar and Koramangala," said Rajneesh Mahajan, national head, retail, Cushman & Wakefield India in his report 'Main Streets Across the World 2007'.

"The growth of the city has also developed new residential pockets and provides retailers opportunities to explore business in new retail precincts. In future this would lead to a strengthening of these emerging markets," he added.

'Main Streets Across the World' is based on the data collected in June 2007 from Cushman & Wakefield's offices. The data relates to the rent obtainable on a standard unit (frontage of six metres and depth of 25 metres) in a prime area.

On the retail real estate scenario in other southern states, which figure in 'Main Streets Across the World 2007', Mahajan said Banjara Hills in Hyderabad is the highest gainer in India with an annual rental growth of 114 per cent over last year. Nungambakkamô Khader Nawas Khan Road in Chennai also witnessed a high rental growth of 106 per cent, making it the second highest riser in the country. S P Road/ Begumpet in Hyderabad and Koramangala 80 Feet Road in Bangalore were among the highest gainers with an increase of 100 per cent and 92 per cent respectively.

Banjara Hills and Jubilee Hills, though traditional markets, are preferred by the new age retailers with the highest annual rent rise in the country. These markets are prime residential locations and home to the city¿s high net worth individuals. The demand for space here far exceeds supply.

Begumpet witnessed a cent per cent rise in the rentals over last year, indicating strong demand dynamics. The exponential growth in the residential development in Hi-Tech City, Kukatpally would bring these pockets up on the retailer radar in times to come. With new high streets emerging in future, the prices would surely see a downward curve in the next 18-24 months.

Chennai's Khader Nawaz Khan (KNK) Road located just off Nungambakkam High Road is a preferred shopping destination in the central business district (CBD) with presence of brands like Benetton, B&O, Atmosphere, Wills Lifestyle, Stanley Boutique, Evoluzione, Subway, Movenpick and Mocha. With the growth of the retail sector, this region has witnessed an annual rental appreciation of 106 per cent as against the 20 per cent witnessed last year.