With Covid-19 wreaking havoc in the country, average monthly rentals across the key high street markets in top cities witnessed some corrections, according to data from Anarock Research.
The Anarock data showed that the most expensive retail hub of the country, Khan Market, in the national capital, saw a drop of between 8-17 per cent in average monthly rentals in Q1 2021, as against Q1 2020.
The average monthly rentals hovered in the range of Rs 1,000-1,100 per square feet as on Q1 2021-end in Khan Market. Likewise, in GK-1 M Block, rentals reduced between 13-14 per cent and are presently in the range of Rs 300-350 per square feet.
Likewise, high street markets of Kala Ghoda, Bandra Linking Road and Fort in Mumbai, one of the worst-affected cities in India, also saw high street retail rentals decline by 5-10 per cent during the same period.
Kolkata also saw a decline in its high street rental rates, Gariyhaat Rash Bihari Avenue being the worst affected in the city with rental rates dropping to Rs 160- 220 per square feet in Q1 2021 from Rs 250-260 per square feet in Q1 2020.
Pankaj Renjhen, COO & Joint MD of Anarock Retail said: "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," he said.
The COO, however, added that there were few markets that saw an upward trend.
Hyderabad localities such as Gachibowli, Banjara Hills, and Jubilee Hills saw average retail rentals increase in Q1 2021 against Q1 2020, as per the data.
"If we consider trends of the previous two quarters, the retail segment seemed to be on the verge of recovery and was gradually inching towards the pre-pandemic-level business. However, the second wave has once again crimped this growth," Renjhen said.
In an overall trend, many of the prominent high streets in the country saw reduced monthly rentals over the last one year.