Mumbai: According to the findings of CBRE's latest report titled "India Retail Market view", India witnessed increased transaction activity and retailer expansion in the first quarter of 2012. Leading brands and retailers pursued expansion plans aggressively, increasing their presence across key retail hubs. In all the seven cities presented in the review, the retail real estate market appears to be promising with an increase in retailer enquiries. Retail mall rentals witnessed growth in prime city micro markets of Delhi, while values in high streets increased in Mumbai, Bangalore and Pune.
The same can be attributed to the heightened interest by retailers coupled with a low base of supply addition as developers continue to focus on attracting tenants in completed products and reducing current vacancy rather than launching new projects. About 1.12 million sq ft of mall supply was added in H1 2012 (concentrated largely in Bangalore), which was less than 20% of almost 6 million sq ft of space added during the same period last year.
In Mumbai, international automobile majors such as Mini Cooper, Lamborghini and Volkswagen continued to be key occupiers of retail space with these brands opening their independent showrooms spread over an area of 2,500 - 12,000 sq ft.
Mini Cooper opened its flagship showroom at Santacruz (W) and Lamborghini and Volkswagen took space at Prabhadevi and Hughes Road respectively.
Steady demand levels and limited supply led to a marginal rental increment of 3-6% in leading high street locations of Linking Road, Colaba Causeway, whilst values increased by 7-8% in Kemps Corner. The demand for prime retail space continued to remain strong in high street markets such as Linking Road, Colaba Causeway and Breach Candy. Nascent high street areas of Borivali, Powai, S.V Road (stretch from Santa Cruz West to Andheri West) also gained prominence with brands preferring to open stores in these locations. During this review period, Linking Road observed opening of stores such as Guess, Hush Puppies and The Hab while Colaba Causeway and Waterfield Road witnessed space take up from retailers such as Pavers England, USPA, Hometown Cafe, Bora Bora, the latter two being new F&B concepts.
Palladium Annexe, part of the existing Palladium Mall at Lower Parel, commenced operations with opening of stores by brands such as Gucci, Bottega Veneta, Jimmy Choo, Tumi, Ermenegildo Zegna and Tag Heuer. This would be the first time Ermenegildo Zegna has taken up space outside the confines of a five star Hotel. Cafe Royale and Grillopolis opened their first stores in Market City mall in Kurla during the first half of 2012.
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