Monthly real estate rentals fall in India’s most expensive locations

Average monthly rentals hovered between Rs 1,000-1,100 per sq. ft. as on Q1 2021-end against Rs 1200 a year ago

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NEW DELHI:  Rental prices for real estate across key high street markets in India's top cities have witnessed a significant correction as Covid-19 pandemic continues to wreak havoc on the country's economy.  

According to property consultant Anarock, India's most expensive retail hub Khan Market (Delhi) saw average monthly rentals reduce by 8-17 per cent in Q1 2021 (January-March) against Q1 2020. Average monthly rentals hovered between Rs 1,000-1,100 per sq. ft. as on Q1 2021-end against Rs 1200 a year ago

Likewise, Mumbai saw an about 5-10 per cent decline in rentals rates in key markets. The current average monthly rentals at both Kala Ghoda and Fort area are around Rs 450-500 per sq. ft. each, while at Bandra Linking Road it stands at approximately Rs 750-900 per sq. ft compared to Rs 800-1000 last year.  

Brigade Road in Bengaluru saw a drop in rentals between 8-17 per cent in Q1 2021 as against Q1 2020 with current average monthly rentals between Rs 250-275 per sq. ft. At Indiranagar, the rentals range between  Rs 225-250 per sq. ft. 

"Retail sector has been one of the worst affected due to the pandemic since early 2020. 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," said Pankaj Renjhen, COO & Joint MD, ANAROCK Retail. 

However, there were a few markets that saw an upward trend. Hyderabad saw an increase in average high street rental rates in areas like Gachibowli, Banjara Hills and Jubilee Hills as much as 7-15 per cent during this period. The average monthly retail rentals in Gachibowli are now at Rs 115- 125 as against Rd 100- 120 per sq. ft last year. In Banjara Hills 12, the average monthly rentals increased from Rs 120-130 per sq. ft. in Q1 2020 to anywhere between Rs 135-140 per sq ft. "The retail segment seemed to be on the verge of recovery... However, this wave has once again crimped growth," he said.

https://www.newindianexpress.com/business/2021/may/04/monthly-real-estate-rentals-fall-in-indias-most-expensive-locations-2298161.html