Rental values are perking up

Aug 12 2010, 00:51 IST
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SummaryThe first half of the year 2010 has seen increased retailer interest in the country, according to the India Retail Report of CBRichard Ellis for January- June 2010.National as well as international retailers who were earlier cautious in their approach have started booking space in prime markets across high streets and malls, the report says.

The first half of the year 2010 has seen increased retailer interest in the country, according to the India Retail Report of CBRichard Ellis for January- June 2010.National as well as international retailers who were earlier cautious in their approach have started booking space in prime markets across high streets and malls, the report says.

Retailers are becoming more cautious in their approach towards retail space and are more conscious of footfalls, tenant mix and conversion rates before committing to retail space options. The concept of shopping as a whole has altered in terms of format and consumer buying behaviour.

Retailers are more aligned to standards-based architecture and software support to all kinds of mission-critical IT applications for enabling greater efficiency, significant cost savings and newbusiness value.

The focus is on finance and accounting, business intelligence, vendor management, supply chain management, merchandising and inventory management, facilities management, stores management and customer relationship management.

Delhi NCR Key retail real estate markets, like the National Capital Region (NCR), Mumbai, Bangalore and Chennai, witnessed an improvement in average rentals in first half of the year.

NCR rentals in Delhi are moving towards stability after an extended period of correction over the past few quarters. While Grade B markets have observed corrections of 5 Ė 10% Grade A retail spaces are close to their pre-recessionary rentals,with a 10Ė15% increase in rental values over the past fewquarters. Retailers are shifting the focus to prime retail space, in spite of the related premium rentals. The past quarter was noteworthy; for it marked the India entry of international apparel giant Zara, with its flagship outlet opening up at Select Citywalk, Saket. The coming months should also see the entry of prominent international brands like Jack&Jones, Forever 21, Diesel, Timberland and Ecko in the city. There has also been a visible trend in the food and beverage B space, with multiple coffee chains and casual diners such as Gloria Jeans, Segafredo Zanetti and Mocha mushrooming across the city. Prime high streets like Khan Market and South Extension continue to hold interest, with the launch of several local eateries, apparel players and electronics giants like Mamagoto, Accessorise, Editions, Daniel Hechter and Croma.

Mumbai

The Mumbai retail market has seen a slow recovery after the slowdown of 2009 as the latter half of the year saw two prominent projects being launched; Palladium at High Street Phoenix and R City Centre (Phase 1), though these projects reached 80%

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