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The overall rentals in select prominent main streets of Linking Road in Bandra saw a decline of 12%. The rentals have dropped from January-March quarter as compared to the October-December quarter.
According to a report by real estate consultancy firm, Cushman & Wakefield, this was due to the exit of a few retailers which created more supply in that market.
A few stores also became available in the micro-market with a few retailers exiting from the location. Additionally, the location which has always grappled with infrastructure issues like road bottle- necks and car parking issues, makes it less attractive for shoppers who have increasingly started to prefer malls over these high-street shopping places.
Jaideep Wahi, Director, Retail Agency, Cushman & Wakefield India says, “Linking Road is one of the most expensive high street retail destinations in India and is a key benchmark for demand for retail space. However there has been a sudden increase of available space with the demand for the same remaining constant due to increased availability caused by the exit of few retailers in this quarter which has resulted in pulling down the rentals.”
Other locations remained largely stable on account of lack of activities due to limited transactions and churn.
Limited availability of quality space in malls at Vashi and Ghatkopar resulted in rental appreciation of 6-7% during the quarter. Malls in Lower Parel, Malad, Goregaon, Mulund and Thane continue to operate at low vacancies with rentals remaining stable due to low transaction activity. These locations could witness additional appreciation in the near future due to low vacancy levels. A new mall in Thane is expected during the second quarter.
