With COVID-19 wreaking havoc in the country, average monthly rents in major high street markets in major cities have seen some corrections. According to recent data from ANAROCK Research, Delhi’s iconic retail hub – Khan Market – saw average monthly rents decrease from 8% to 17% in the first quarter of 2021 compared to the first quarter of 2020. Likewise, High street markets of Kala Ghoda, Bandra Linking Road and Fort in Mumbai (one of the hardest hit cities) also saw high street retail rentals drop between 5% and 10% over the same period. period.
However, few markets have also seen an uptrend. For example, towns in Hyderabad such as Gachibowli, Banjara Hills and Jubilee Hills saw their average retail rents increase in the first quarter of 2021 compared to the first quarter of 2020.
Mumbai saw rental rates drop by around 5-10% in key markets compared to the first quarter of 2021 compared to the previous year. Current average monthly rents in both Kala Ghoda and Fort area are around Rs 450-500 per square foot each, while in Bandra Linking Road it is around Rs 750-900 per square foot .
The country’s most expensive retail hub – Khan Market in New Delhi – saw average monthly rents drop 8-17% in the first quarter of 2021, compared to the first quarter of 2020. Average monthly rents hovered between 1,000 and 1,100 rupees per square foot. as in Q1 2021-end. Likewise, in the GK-1 M block, rents have been reduced by 13-14% and are currently Rs300-350 per square foot.
Brigade Road in Bengaluru saw a drop in rentals of 8-17% in the first quarter of 2021 compared to the first quarter of 2020 with a current average. monthly rents between Rs 250-275 per square foot. In Indiranagar, rentals range between Rs 225-250 per square foot.
Another badly affected city was Pune, where average monthly rents on main streets fell between 8-20% in the first quarter of 2021 compared to the first quarter of 2020. While MG Road has seen rentals maintain the status quo of 250 to Rs 275 per square foot, the owners of JM Road also maintain rents at Rs 275-300 per square foot despite the vacancy.
Kolkata has also seen a drop in its rental rates on main streets, with Gariahat Rashbehari Avenue the most affected in the city with rental rates falling to Rs 160-220 per square foot in the first quarter of 2021 from 250 at 260 rupees per square foot in the first quarter of 2020.