Indiranagar sees highest YoY rental growth among APAC mainstreets

Bengaluru: Bengaluru’s Indiranagar saw the strongest rental growth market in the Asia-Pacific region at 32 per cent year-on-year (YoY), according to a report on mainstreets by commercial real estate services firm Cushman & Wakefield, released on Thursday.

The average rental growth recorded in 16 tracked Indian locations was a 9 per cent increase YoY.

Meanwhile, Delhi’s Khan Market was the 22nd most expensive mainstreet globally. With rents at about Rs 19,330 per square foot (sf) annually ($229), Khan Market continues to be India’s most expensive high street, registering a 7 per cent YoY rental growth.

In fact, in the Asia-Pacific retail landscape, Khan Market surpassed notable locations like Bangkok’s Central Retail District, Jakarta’s Prime Main Street, and Bonifacio in Manila.

Other streets which saw notable growth were Pune’s MG Road, Fort/Fountain in Mumbai, and Park Street in Kolkata.

On the other hand, Chennai’s Anna Nagar and Pondy Bazaar remain some of the region’s most affordable high streets, with rentals between Rs 2,100-2,160 per square foot annually.

Delhi-NCR now hosts India’s top three most expensive retail high streets, including Connaught Place (Delhi) and Galleria Market (Gurgaon).

Saurabh Shatdal, Managing Director, Capital Markets and Head-Retail-India, Cushman & Wakefield, said, “Khan Market’s position among the world’s top retail destinations underscores the resilience and strength of India’s retail sector. The limited availability of retail space in the area creates intense competition, pushing rental values higher. With malls facing supply constraints, main streets across India are thriving, driven by robust demand and strong rental growth.”

As of year-to-date in 2024, main streets have recorded leasing of 3.8 million sf, marking a 11 per cent YoY growth.

Globally, Milan’s Via Montenapoleone topped the list at a rent of $2,047 per sf per year, where rents have risen by nearly a third in the past two years. It has overtaken New York’s Upper 5th Avenue which is now second, making it the first time a European street topped the firm’s report.

Rents increased in 79 of the 138 locations tracked, declining in just 19, with global average rental increase of 4.4 per cent. The Americas was the strongest performer regionally at 8.5 per cent, driven by rental growth of almost 11 per cent in the US, which is more than double the 5.2 per cent recorded last year, followed by Europe and Asia Pacific at 3.5 per cent and 3.1 per cent respectively.