New Delhi: Connaught Place in Delhi-NCR marked a 33 percent year-on-year growth in rental rates for high street retail space, the highest amongst the Tier 1 cities. Connaught Place was followed by two high streets in Bengaluru—Hennur Main Road and Commercial Street—with 20 percent and 17 percent year-on-year growth in the rentals, respectively, as per a report by property consultant Knight Frank India.
Amongst tier-2 cities, Guwahati-Shillong Road recorded the highest rent appreciation of 38 percent, which is also the highest for all 58 high streets across the country.
The trends show that apparel dominated the retail market across high streets with a 29 percent contribution, followed by food and beverages at 18 percent, exhibiting the importance of dining options for consumers. Accessories cover 17 percent of high streets.
Knight Frank India, in its latest report, 'Think India Think Retail 2024: Shopping Centre and High Street Dynamics Across 29 Cities', noted that high streets generate an average of USD 370 per square foot in 2023.
The report further projected that the potential consumption across 58 high streets in 29 cities will be nearly USD 3 billion in 2024–25.
The report estimates that the total number of operational stores on high streets across 29 cities is 7,246, the majority of which are located in Tier 1 markets. In 2023, the National Capital Region (23 percent), Bengaluru (18 percent), and Hyderabad (15 percent) emerged as the top three cities with the highest number of stores among the top eight cities. Among tier two cities, Vadodara (2 percent), Surat (2 percent), and Chandigarh (2 percent) led with the most stores.
Khan Market in NCR commanded the highest rent, ranging from Rs 1,000–1,500 per sq ft per month, followed by DLF Galleria in Gurugram, with rents ranging from Rs 800-1,200 per sq ft per month.
In the high-street space, Indian brands are dominating the retail market landscape. As per the report by Knight Frank India, as many as 87 percent of stores on high streets are occupied by Indian businesses, as these are focused on meeting local preferences.
Indian brands are choosing to be in locations that are either in proximity to their catchment or are placed to benefit from the historical or cultural importance of these high streets.
In the 34 high streets located in Tier 1 cities, Indian-origin stores have a massive presence of 5,232 as compared to 725 international-origin stores, while in the Tier 2 markets, where total stores on high streets are estimated to be 1,289, Indian-origin stores are almost completely dominated by Indian origin stores at 1,106, compared to just 183 international-origin stores.
"Despite grappling with inadequate infrastructure, many retail high street locales are now witnessing concerted endeavours towards urban renewal, particularly in tier 1 cities. It is our anticipation that, in the foreseeable future, the establishment of new mobility infrastructure will further catalyse the resurgence of prime high streets, reclaiming their status as premier destinations," said Shishir Baijal, Managing Director, Knight Frank India. (ANI)
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