MARKETBEAT

Retail Snapshot Q4 2015

DELHI-NCR, INDIA

Economy

ECONOMIC INDICATORS
National

2014

2015

2016F

GDP Growth

6.9%

7.3%

7.5%

CPI Growth

6.7%

6.0%

5.9%

Private Final Expenditure Growth

6.2%

6.3%

7.0%

Govt. Final Expenditure Growth

8.2%

6.6%

7.9%

Source: CSO, RBI, Oxford Economics

PRIME RETAIL RENTS DECEMBER 2015

Main Streets
INR
SF/MTH

EURO
SF/YR

US$
SF/YR

Q-O-Q
Change

Y-O-Y
Change

India's GDP growth for the second quarter of FY2015-16 was

recorded at 7.4%, as compared to 7.0% in the April-June 2015
quarter on the back of higher manufacturing output.
Manufacturing sector grew by 9.3% during the July-September
quarter, against 7.25% that was recorded in the April-June
quarter. India's retail inflation accelerated to a 14-month high in
November to 5.4%, from 5.0% in the preceding month. This was
driven by food inflation that rose to 6.07% in November from
5.25% in the preceding month. The government, in November,
relaxed foreign direct investment (FDI) norms of construction
development by removing two major conditions related to
minimum built up area and capital requirement.

1,250

208

227

0.0%

0.0%

Market Overview

South Extension I
& II

750

125

136

0.0%

0.0%

Lajpat Nagar

225

37

41

0.0%

0.0%

Connaught Place

850

142

154

0.0%

6.3%

Greater Kailash I,
M Block

550

92

100

0.0%

0.0%

Rajouri Garden

200

33

36

0.0%

0.0%

Punjabi Bagh

200

33

36

0.0%

0.0%

Karol Bagh

375

62

68

0.0%

0.0%

Kamla Nagar

400

67

73

0.0%

0.0%

Dwarka

425

71

77

0.0%

0.0%

Vikas Marg

200

33

36

0.0%

0.0%

750

125

136

0.0%

7.1%

190

32

35

0.0%

0.0%

225

37

41

0.0%

0.0%

INR
SF/MTH

EURO
SF/YR

US$
SF/YR

Q-O-Q
Change

Y-O-Y
Change

South Delhi

500

83

91

0.0%

0.0%

West Delhi

325

54

59

0.0%

0.0%

Gurgaon

375

62

68

0.0%

0.0%

Noida

380

63

69

0.0%

0.0%

Greater Noida

125

21

23

0.0%

0.0%

Ghaziabad

200

33

36

0.0%

0.0%

Deferred mall supply; marginal increase in mall vacancy

levels. Delhi-NCR witnessed no new mall supply due to
deferment of malls to the beginning of next year. Overall mall
vacancy levels increased marginally compared to the previous
quarter primarily due to exit by retailers in malls in West and
North Delhi submarkets.
Mall rentals remain stable across submarkets in the city.
During the fourth quarter of 2015, mall rentals remained stable in
most malls with stable demand. Brands from the food and
beverage (F&B) and lifestyle segment such as Wendys, Central,
Aeropostale and H&M took up mall space during the quarter.
Rentals in main street locations maintain status quo. The
main street locations also witnessed rental maintaining status
quo during the quarter as both retailers and landlords exhibited
sensitivity to any rental change. Demand for space in main street
locations during the quarter was mainly from apparel and food
and beverage (F&B) segment. Main street locations in South
Delhi, namely Greater Kailash, South Extension, Defence Colony
and Lajpat Nagar witnessed take-up primarily from the apparel
sector. Few brands that took up space in main street locations of
South Delhi include Flying Machine, US Polo Assn., Anju Modi
and Vibe to name a few. Prominent main street locations of
Central Delhi, Khan Market and Connaught Place attracted
brands from the F&B along with apparel segment with brands
such as Caf Coffee Day, Summer House Caf, Begin Human
and AM:PM opening stores. Kamla Nagar in North Delhi
witnessed demand from apparel and F&B segment with brands
including Pepe Jeans and Chocolate Room taking up space.

Khan Market

DLF Galleria
(Gurgaon)
Sector 29
(Gurgaon)
Sector 18 (Noida)
Malls

Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted
Conversion Rate: US$1= INR 66.05 and Euro 1 = INR 72.05
*Newly Added in 2015

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MARKETBEAT

Retail Snapshot Q4 2015

DELHI-NCR, INDIA

Outlook

SIGNIFICANT LEASING TRANSACTIONS

Property

Location

Tenant

Square Feet

Select City Walk

South Delhi

Aeropostale

2,500

Standalone

Connaught Place

Summer House Caf

2,200

SIGNIFICANT PROJECT UNDER CONSTRUCTION

Completion
Date

Property

Location

Square Feet

Mall of India

Noida

1,900,000

Q1 2016

Reliance Mall

West Delhi

500,000

Q1 2016

Significant new mall supply expected in the next quarter.

Several malls, aggregating 3.3 million square feet, are scheduled
to commence operations from the next quarter. Most of these
malls have witnessed healthy retailers interest and are expected
to begin operations with healthy occupancy levels.
Rentals expected to remain stable across submarkets. With
stable demand, rentals across submarkets is expected to
maintain status quo during the next quarter in both malls and
main street locations.

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Copyright 2016 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.

Somy Thomas
Managing Director
Valuation & Advisory Services, India
Tel: +91 80 40465555
somy.thomas@ap.cushwake.com

www.cushmanwakefield.com