Delhis Khan Market Worlds 21st Costliest Street
Delhi's Khan Market world's 21st costliest street
NEW DELHI: Khan Market continues to be the most expensive retail high street in the country. In fact, its ranking in the global retail high street improved by three notches to 21, according to an annual survey by global real estate consultancy firm Cushman & Wakefield.
While New York's Fifth Avenue retains its position as the most expensive shopping destination in the world, Hong Kong's Causeway, and Ginza in Tokyo are at the second and third places ahead of London, Paris and Milan in the 2010 survey. The study was carried out for 269 shopping locations across 59 countries.
In the global markets, running a shop in Khan Market is more expensive than in Luxumbourg, Oslo, Stockholm, Dubai, Manila and Mexico City. In India, Khan Market is ranked above Mumbai's Linking Road in Bandra and New Delhi's Connaught Place.
"With the markets gaining momentum and retailers globally revising their expansion plans in India, we see a gradual resurgence in values. New Delhi and Mumbai will continue to witness a faster growth rate in value against others due to greater interest in these markets,'' C&W said in a statement.
"Most major and premium brands have shown a clear preference for Khan Market. Also, with very little vacancy in that location, available spaces have been commanding high values,'' it said.
In 2010, however, markets like South Extension (-12%), Greater Kailash I (-10%) in New Delhi and Rajbhavan Road in Hyderabad witnessed a decline in rentals. Delhi's Basant Lok recorded the steepest erosion in rentals across the country by over 38%. "However, cities like Bangalore, Chennai, Pune and even Ahmedabad have experienced a growth over the previous year,'' C&W ED Kaustuv Roy said.
Khan Market saw a rise of over 15% in rentals after a dismal performance in 2009, largely due to returning interest from retailers even as many brands have started to revise their expansion plans in the country. Mumbai's Linking Road witnessed a jump of 33% in its rental in 2009-10.
C&W, however, maintained that unlike the previous time, landlords will not increase the rentals very steeply as it could affect the attractiveness of doing business from these markets. "Going forward we expect many retail markets to gain their previous strength but landlords will be cautious about the rate at which values go northwards. They would like to keep prices at acceptable limits of growth, given the previous experience of diminished interest for locations with higher values,'' he added.