Bengaluru Leads Among Top High Streets Of India: Knight Frank
Average per square metre revenues of high streets will be significantly higher than those of malls in FY24, says Knight Frank.
Four Bengaluru shopping locations feature in Knight Frank's top 10 list of high streets, for primary business and retail activities, that have emerged as a focal point for retailers across multiple categories.
The types of retail stores found on such high streets comprise brands of Indian and international origin and garner wide-scale business from shoppers.
MG Road in Bengaluru has topped the list of high streets in India, followed by Somajiguda in Hyderabad and Linking Road in Mumbai, according to the primary survey conducted by Knight Frank.
South Extension in Delhi, Park Street and Camac Street in Kolkata, and Anna Nagar in Chennai occupy the next three spots. Commercial Street, Bridge Road, and Church Street also feature in the top 10 list.
The study was conducted on 30 high streets across the top eight markets in India. It was based on parameters that determine the quality of experience that the high streets provide to customers.
The ranking is part of Knight Frank India’s flagship annual retail report— Think India Think Retail 2023-High Street Real Estate Outlook—in association with Phygital Retail Convention 2023.
The total high street stock of 13.2 million square feet is spread across 4,875 retail stores in the top eight markets, according to the study.
High Street Rentals
The average monthly rent to lease retail space on the high streets varies across the top eight cities.
"Despite real estate rent corrections across all asset classes, the post-pandemic bounceback led to numerous transactions being closed at rents higher than previously witnessed," the report said. "Some of the high streets captured in the survey are the country's most expensive retail hubs."
Khan Market in New Delhi, DLF Galleria in Gurugram, and Linking Road and Turner Road in Mumbai are three high streets in the country where retailers have to shell out hefty rents to maintain brand presence, according to the research.
High Streets Vs Shopping Malls
The high streets occupy only 6% of the total gross leasable area. However, high streets offer 100% efficiency due to low maintenance costs, while the efficiency can range anywhere between 50% and 60% for shopping malls, depending on the grade of the complex, according to the research.
The potential consumption in the high streets is expected to be at nearly $2 billion for fiscal 2024.
Estimates suggest that the average per square metre revenue of high streets will be significantly higher than those of malls in FY24, Shishir Baijal, chairperson and managing director at Knight Frank India, said. "We expect that high streets to provide a good retailing experience to customers to see a revival even as other formats of retail continue to thrive."
