Retailers will have to shell out more money to set up shops at India's high streets as rentals have gone up considerably, led by Khan Market in New Delhi, which is now the 21st most expensive location in the world.
According to real estate consultant Cushman & Wakefield's 'Main Streets Across the World 2010', Khan Market moved up three spots this year from 24th last year in the list of most expensive streets across the globe, that is topped by the Fifth Avenue in New York.
Hong Kong's Causeway Bay was the second most expensive street, followed by Ginza in Tokyo, Japan, at the third spot.
According to the survey that tracks the world's top 269 shopping locations across 59 countries, rental at Khan Market is estimated to be around $284 per square feet annually as against $1,850 in New York's Fifth Avenue.
Also the most expensive retail destination in India, Khan Market saw an increase of 15.80 per cent in rentals in 2009-10 as compared to previous year, the report said.
"Most major and premium brands have shown a clear preference for that micromarket (Khan market). Also with very little vacancy in that location, available spaces have been commanding high values," it said.
Many other high streets in the country have also witnessed an increase in rentals over the previous year. For instance, Linking Road in Mumbai saw a rise of 33 per cent, CG Road in Ahmedabad surged by 18.2 per cent and that of MG Road in Pune by 13.6 per cent.
Interestingly, in the 2009 survey, Mumbai had noted the highest fall in rental values as a result of the economic downturn. "With the markets gaining momentum and retailers, both national and international, are revising their expansion plans in India, we are seeing a gradual resurgence in values," Cushman & Wakefield India, executive director Kaustuv Roy said in a statement.
However other retail high street destinations in New Delhi and NCR did not see the same fervour and locations like Greater Kailash and South Extension continued to see a downward slide in rental by 10 per cent and 12 per cent respectively.
"The biggest erosion of rental values across India was also noted in Basant Lok recording an annual decline of over 38 per cent," the survey said.