The post downturn recovery for real estate sector in Chandigarh has resulted in rentals coming down, which is seen as a positive sign for retailers.
With rentals softening post-recession, the market is expected to catch attention of retailers who had been nursing dreams of expanding their operations in Chandigarh.
According to realtors, rentals in the commercial sector were dipping up to 25 per cent. Realtors say before September 2008 when the global economy went into turmoil, rentals in Chandigarh market were really at peak and deterred retailers from expanding their operations here.
The realtors maintained that at present sanity seemed to prevail among the owners in Chandigarh, who were seen no more unyielding on the rental front.
R P Malhotra, General Secretary, Property Owners’ Welfare Association (POWA), Chandigarh, maintained that the bubble in property sector witnessed earlier had now settled down.
Malhotra maintained that with rentals softening, customer enquiries had improved by 10 per cent to 15 per cent.
As against Rs 700 per sq feet that was the rental in Sector 17 in Chandigarh pre-recession era, the rentals now had moved down to Rs 300-350 per sq feet.
Realising that market is passing through tough phase, the malls in the region in order to attract the attention of retailers are working on innovative models.
Instead of following pure rental formats where fixed rental is charged every month from retailers, irrespective of what revenue he has earned, malls are working on a model, which is mix of minimum guarantee and revenue sharing, whichever is higher.
