Rentals of Noida malls up by 10%
In Noida, Connaught Place (Inner Circle) recorded an increase of 12 per cent while prime malls across Delhi NCR saw a positively rising curve following robust demand for the same, states the latest retail report by real estate consultancy Cushman & Wakefield. NCR retail real estate market remained largely stable the report states. Prominent main streets of Delhi NCR like Connaught Place and Greater Kailash I, M Block markets witnessed expansion and entry of prominent international brands leading to a stable to upward rental trend in the rental values. Due to healthy demand in Connaught Place, a sharp rise of 12% was witnessed over the previous quarter.
The values in other markets remained stable with an upward bias owing to limited main street space availability. Steady demand and expected churn is likely to push up the mall rentals in South Delhi and Gurgaon and main street rentals in Connaught Place (Inner Circle), South Extension I & II.
Driven by the interest from luxury retailers there were some significant few transactions in malls. Select quality malls in South Delhi and Noida witnessed rental appreciation. Dearth of quality mall space and high demand caused a 10% q-o-q appreciation in Noida's mall. South Delhi Mall space also registered a growth of approximately 2 per cent in the same period owing to lease expirations and consequent churn in mall destinations.
Overall vacancy levels in malls dipped to 15.8 per cent on account of sustained leasing action in both main streets and malls. However, NCR was the only city to witness a marginal rise in mall vacancy level of about 1 per cent over the quarter owing to increased in availability primarily in malls located in the peripheral locations. There was a deferment of approximately 500,000 sq. feet of mall space in Delhi NCR now expected to be seen entering the market in the next few months.
Noida, Connaught Place, prime malls, Delhi, NCR, Connaught Place