Overseas brands keen on expanding operations

The luxury segment continued to witness the entry of new players such as Italian fashion brand Emilio Pucci and UK based fashion brand REISS finalizing Indian partners along with blocking space in premium malls. Stores by both brands are expected to become operational in the coming few months.

Rentals across certain key high streets witnessed a rise in the first half of the year. Limited availability of space coupled with a perpetual interest from prominent brands to operate out of this market has resulted in rental increment in Khan Market during this period. Basant Lok, on the other hand, witnessed a slight dip in rentals due to limited interest of retailers in the micro market. Rentals in South Extension continued to remain stable with steady demand levels while those in Connaught Place witnessed a marginal increase of 7-8% due to a rise in demand.

Robust retailer demand led to an increase in rental values across most malls in the Delhi-NCR region. Malls in Delhi continued to attract interest from retailers, particularly global brands, with Saket District Centre witnessing a rental increase of about 14-15% and Vasant Kunj witnessing an increase of about 9-10% during the review period. The suburbs of Gurgaon and Noida did not witness any new mall completion, which when coupled with steady demand from retailers led to a rental appreciation of about 10-11% in both locations.