Rentals correct further on sluggish demand: C&W Report

Most of the retail micro markets, including mall as well as main streets, have slumped further in rental values in the January-March quarter, according to a report by global real estate service giant Cushman & Wakefield. .

Amongst the cities witnessing correction in the prices, Mumbai stood first with the sharpest reduction for both malls and main street, where Goregaon saw a fall of 42% and Colaba saw 38% correction. The National Capital Region (NCR) main street location of Greater Kailash, M Block stood with 25% and Noida witnessed 17% correction in rental values. Ahmedabad witnessed rental value correction in the range of 20-36% in the quarter.

Analysts believe that the correction may invite retailers to re-enter as receding end user demand has lent lesser uptake of space. It is also believed that more correction in prices are likely in the short to medium term.