RETAIL RENTALS CONTINUE TO FALL

Posted By Dr. Vishesh Rawat

Retail rentals across metros corrected by about 10 percent in the first half of 2009 compared with the second half of 2008. The drop could be as high as 40 percent in many locations when seen in the context of rentals in the first half of 2008, said a CB Ellis retail market review for the first half of this calendar. The report said retailers were also renegotiating rentals to make their operations viable and many developers had a renewed stance on revenue sharing agreements, unlike earlier when demand was favourable. Anshuman Magazine, Chairman and Managing Director, CB Richard Ellis, South Asia, said, “India is one of the fastest growing retail markets in Asia-Pacific. “Due to the current global economic recession and slowdown in the Indian economy, retail rentals across key markets did witness a fall as compared to the same time last year. “However, I expect the long term growth to stay on track.”