India ranks 31st on the list of top 50 most expensive global retail locations

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Mumbai, Nov 21: Retailers are focusing on some of the major global fashion capitals, pushing rents in the world’s most expensive retail locations even higher, according to CB Richard Ellis’ (CBRE) latest Global Retail Rents Survey.

Some smaller and secondary retail cities continue to see strong levels of growth, however global fashion capitals such as Hong Kong, London and Los Angeles now sit alongside these markets in the company’s top 25 fastest growing retail rents index, whilst simultaneously claiming some of the most expensive retail rents in the world.

The Indian retail sector has seen a slight correction in rentals in key cities, primarily due to prevailing market conditions. From being the 27th most expensive retail destination India has dropped to the 31st spot.

“The growth of the sector too, has seen a slowdown keeping in sync with the global economic conditions. However India continues to be a preferred location for international brands and will continue to attract retailers,“ said Anshuman Magazine, Chairman & Managing Director, CB Richard Ellis.

Demand is coming from retailers that are performing well in the current market-such as luxury brands -but also from retailers who are reining in wider expansion plans in response to weakening consumer spending and focusing on longer-term strategic locations as opposed to new destinations. Despite deteriorating economic conditions, the retail sector has continued to perform relatively well. Half of the markets surveyed saw retail rental growth in the past year (ending Q3 2008), with 65% of those seeing increases over the last six months.

New York’s 5th Avenue remains the world’s most expensive retail destination, with rental values reaching euro 16,817/sqm/annum, more than 75% higher than Hong Kong, the second most expensive location. Also making the top five most expensive retail destinations globally are Moscow, London and Tokyo.

Although rents have risen in many key cities, the slowdown in consumer demand has inevitably struck some retail markets around the world resulting in falling rents.