According to a study by global real estate consultant Cushman & Wakefield (C&W), traditionally strong retail high streets, such as Linking Road and KempsCorner in Mumbai, Ganesh Khind Road in Pune and Cathedral Road and R K Salai in Chennai witnessed a drop in rentals ranging between 13-20 per cent.

"This is prominently due to caution in expansion plans of retailers which is leading to a slowdown in demand," the report said. The downfall over the quarter was a phase of correction over the previously skyrocketing retail rentals, it added.

"Mall rentals too witnessed a similar trend where rental values have corrected to realign to the achievable business potential of the given market. This was especially true for rentals in Mumbai markets such as Ghatkopar (-11 per cent) and Vashi (-10 per cent)...," the report said.

It added that NCR, which received the highest quantum of mall space in the quarter saw rental correction of approximately 6-9 per cent in peripheral locations like Noida and Gurgaon.

"Bangalore, Hyderabad and Kolkata retail markets remained stable with certain mall locations even seeing an appreciation in rental values. Ahmedabad situated on the other side of rental spectrum experienced the highest fall in rental values of 20 per cent in Kankaria Lake," the report said.

The third quarter of 2008 has been significant for the retail real estate sector as, for the first time in recent past, many established locations saw correction of values both in mall as well as high streets, the report said.