Mall Rentals Fall across India

Six months ago, Retailers targeted Realtor for unrealistic mall rentals and said that it was getting really difficult to do business. Reebok India started moving out of Malls and started operating on a new business model - award franchisees to prime commercial property owners on minimum revenue guarantee.

In a research report released by C&W, the retail rentals in most malls since Jan-2008 have seen dip by 12-15% except South Delhi where it has went up by 5%. [Rs / sft / month]

• Noida Rs 370 to Rs 325
• South Delhi Rs 400 - Rs 425
• Link Road, Mumbai - RS 425 to Rs 365
• Kalyani Nagar, Pune - Rs 250 to Rs 220
• Kormangala, Bangalore - Rs 530 to Rs 485
• Salk Lake, Kolkata - Rs 525 to Rs 500
• South Kolkata - Rs 400 to Rs 370
• Chennai - Rs 550 to Rs 515

Realty Developers are moving at a snails pace to open new malls to keep the demand artificially high. However, with rising Inflation and slowdown in GDP growth, the sector will cool down.