New Delhi, Aug 3 (Inditop.com) With the economic slowdown impacting consumer sentiments, the demand for retail rental space in Delhi has seen a 25 percent decline over six months, says a report by the global realty consultant CB Richard Ellis released Monday.
According to the report titled Global Retail MarketView, the demand for retail space has declined across the world as consumers cut back on spending and unemployment continued to rise in many countries.
“New Delhi in India saw a 25 percent decline in a six month period,” the report said.
“Emerging and less established markets have been most significantly affected. Buenos Aires saw the largest annual decline in retail rents year-on-year with a drop of 37 percent, followed by Warsaw with a 33 percent decline and Washington DC with a 26 percent decline.”
The CB Richard Ellis report said despite a 10 percent year-on-year rental decline, New York remained the world’s most expensive retail destination, with rates averaging $1,800 per square feet per annum.
Hong Kong followed with rents of $975 per square feet per annum, while Moscow overtook Tokyo to move to third place from fourth.
Paris and Tokyo filled the next two slots, the five cities making up the most expensive retail locations.
Delhi ranked 69th.
Said Anshuman Magazine, chairman and managing director of CB Richard Ellis in South Asia: “Rentals in Delhi NCR have corrected further when compared to the beginning of 2008.”
According to him, retailers feel rentals “have corrected to sustainable levels” and rentals are “being renegotiated to make retail operations financially viable”.
“Another trend that has been witnessed during this time is of developers adopting a renewed stance towards revenue share agreements, as opposed to earlier, when the demand situation was more favourable,” Magazine added.
