High street rental rates decline due to Covid-19: Anarock
Monthly store rental rates in key Indian high street markets have decreased in the first quarter of 2021, compared to the first quarter in 2020, due to the ongoing effects of the Covid-19 crisis.
India’s most expensive retail location, Khan Market in New Delhi, saw its monthly renal rates drop on average from between 8% and 17%, according to data from Anarock Research, accessed by Indo-Asian News Service. The area, known for its upmarket fashion boutiques, is one of the many retail locations affected by the pandemic and average monthly rentals in the area ranged from around Rs 1,000 ($13.54) to Rs 1,100 per square foot in the first quarter of 2021, Anarock said.
Other areas which have seen rental rates affected by the pandemic include Bandra, Fort, Kala Khoda, and Linking Road in Mumbai which has seen rentals decline by 5% to 10% in the same time period, according to Anarock.
“The retail sector has been one of the worst affected due to the pandemic since early 2020,” said joint managing director and COO of Anarock Retail, Pankaj Renjhen, ET Bureau reported.
“With almost zero sales amidst lockdown and thereafter as well for few months, we saw retailers closing their stores or even curtailing their future expansion plans. As a result, the average monthly rentals across the major high street retail markets mostly saw corrections across cities.”
However, despite many metros seeing rental rate declines, Hyderabad saw monthly rates increase in some areas including Banjara Hills and Jubilee Hills, two areas with many luxury fashion stores. As the second wave of Covid-19 continues to see businesses temporarily close down in local lockdowns, a new wave of business closures and disruption is expected.
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