Brigade Road has recorded a 19 per cent decline in rentals quarter on quarter, estimated a new market report by global real estate intelligence firm Cushman & Wakefield.
“The location has been witnessing a drop in interest of retailers due to continuous infrastructure development going on in the area. Another major reason for this movement is the steady expansion of the city’s population to other locations,” the report said.
Contrary to this, Indiranagar’s 100 Ft Road saw an increase of 11 per cent in rental values over the last quarter. “The location, due to established catchments of residential as well as office commuters, has been witnessing robust retail leasing over the years but due to lack of quality of supply and buoyant demand have started to show an upward trend in rental values,” it said.
Jaideep Wahi, director, Retail Services said, “Bengalore has been witnessing a lot of latent demand. However, leasing activities have been slow on account of the quality of retail spaces. There has been a lack of fresh retail space in both malls as well as main streets which has further discouraged retailers from expanding as there has been a specific insistence on the quality of retail space.”
The report put out comparative figures when it came to mall space. “Bangalore witnessed fresh mall supply of 3,60,000 square feet in Q3. But with restrained retailing activities, mall vacancy registered an appreciation of approximately 2 per cent over the previous quarter. Retailer enquiries have been limited to established malls, where no churn in the existing tenant mix was witnessed, thus retailers looking for prime retail spaces in malls, were seen holding out their decisions,” it said.
Rentals across various mall locations remained unchanged on account of no fresh leases undertaken in these markets.