NATIONAL CAPITAL REGION RETAIL REPORT (New Delhi, Gurgaon and Noida)
MARKETBEAT
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
1Q09
MALL DEVELOPMENT Mall supply during the first quarter of the year was recorded at 800,000 sq. ft. with malls getting operational in Faridabad and South Delhi. The mall rental values weakened across all micro markets owing to slow down in demand for retail space amidst current economic slowdown. The correction in rental values ranged between 7-17% over the last quarter with Noida noting the highest decline of 17%. main street DEVELOPMENT Main Street rentals have noted significant correction over last year with values falling up to 25% during the first quarter of 2009. The prevailing rental values failed to match the expectation of the retailers forcing them to exercise caution in implementing their expansion plans. This has resulted in reduced churn of properties in the prominent main streets. The increase in mall space across NCR has impacted the business potential of several retailers at adjoining main streets. With malls opening in South Delhi, a drop in revenue has been witnessed in the neighbouring main streets locations, resulting in reduced demand and decline in rental values in the micromarkets. Greater Kailash I, M Block noted highest correction over the year and over the last quarter due to increasing prominence of other retail locations in the micromarket.
The Essay on resourcefullness as it relates to the novel cliff notes 1959
Personal resourcefulness throughout the journey of life and all of its trials is essential to achieve one's goals or to be successful. Being resourceful simply means that a person can use personal judgement and intuition along with any available resources to achieve a goal or goals that would otherwise have proved more difficult or impossible. The root of the word resourceful is "resource" which ...
OUTLOOK NCR is expected to witness mall supply of 4.0 million sq.ft. during the year, majority (3.6 million sq. ft.) of which is likely to become operational in the last quarter. However, slow down in the construction activity may lead to deferment of some projects. The existing mall space, increasing vacancy levels and the planned supply is likely to bring fundamental changes in mall positioning. In such a scenario, the developer will focus on introducing various retail concepts servicing the specific need of the targeted consumer. However, to support such initiative rental values may start to rationalise in the medium term. The mall space added over last few years along with the main streets and neighbourhood retail precincts appears to have created excessive retail space. The slowing construction activity may provide the required support towards better space productivity.
ECONOMIC INDICATORS
LATEST RELEASE Real GDP Growth CPI Growth (UNME)* Tourist Arrival Growth Stock Market Growth (BSE) Oct 08 – Dec 08 Jan 09 Dec 08 Jan 09 – Mar 09 5.3% 10.4% -12.5% -0.1% 2006 9.6% 6.5% 13.5% 46.3% 2007 9.0% 5.9% 14.3%** 46.7%
KEY TRANSACTIONS (MALLS & MAIN STREETS)
PROPERTY Connaught Place Ambience Mall, Gurgaon Ambience Mall, Gurgaon Select Citywalk, Saket TENANT Fitness First Blue O Tommy Hilfiger Forever New SQ FT 24,000 10,000 2,200 1,700
MAJOR NEW MALL SUPPLY IN THE NEXT 6 MONTHS
PROJECT NAME Metro Mall House 2 Home LOCATION Azadpur, Delhi Sohna Road, Gurgaon SBUA (SQFT) 250,000 150,000 DATE OF OPENING 3Q 09 3Q 09
PRIME MAIN STREET RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR Khan Market Connaught Place (Inner Circle) South Extension I & II Karol Bagh Basant Lok Greater Kailash I, M Block 1,000 625 650 325 550 600 US$ 19.7 12.3 12.8 6.4 10.8 11.8 € 14.9 9.3 9.6 4.8 8.2 8.9 % GROWTH (Local Measurement) 1 YEAR 3 MONTH -9% -7% -19% -13% -19% -25% -25% -22% -35% -27% -32% -43% SHORT TERM TREND
PRIME MALL RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR South Delhi West Delhi Noida Gurgaon 490 280 310 250 US$ 9.6 5.5 6.1 4.9 € 7.3 4.2 4.6 3.7 % GROWTH (Local Measurement) 1 YEAR 3 MONTH -11% -7% -17% -9% -26% -32% -35% -35% SHORT TERM TREND
The Review on Final Year Project Report
My deepest appreciation also goes out to Mrs. Sharatul Izah Bt. Samsudin who gave me many needed support, encouragement and help throughout my project’s improvement in PSM I, and my friends who struggling with me exploring this scope. Not to forget, thanks to my family and fellow friends who encouraged me. Finally, thank you to all those involved directly and indirectly helping me out during my ...
Note: Conversion Rate: USD = INR 50.86; Euro = INR 67.44 Note: Rentals mentioned are for ground floor premises on carpet area, for vanilla retailers Source: Cushman & Wakefield Research
Source: Central Statistical Organization, Labour Bureau & Ministry of Tourism, India * Consumer Price Index Growth for Urban Non-Manual Employees ** Revised Estimates Note: Real GDP growth calculated as per financial year; while CPI, Tourist Arrival and Stock Market growth given as per calendar year
LEGEND
Market Rising Market Falling Market Stagnant, likely to Strengthen Market Stagnant, likely to Weaken Market Stagnant
For industry-leading intelligence to support your real estate and business decisions, go to Cushman & Wakefield’s Knowledge Center at www.cushmanwakefield.com/knowledge 14th Floor/II, Block C, Building No. 8 DLF Cyber City, Gurgaon – 122 002 Tel: +91 124 469 5555 www.cushmanwakefield.com
This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. ©2009 Cushman & Wakefield, Inc. All rights reserved.
MARKETBEAT
KOLKATA RETAIL REPORT
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
1Q09
MALL DEVELOPMENT Kolkata witnessed no fresh mall supply in 1Q 2009. A number of projects which were slated for launch in this quarter have been deferred to subsequent quarters of 2009. Most of the deferred mall projects were expected to come up in Rajarhat. Continuing with the past trend, another significant mall project sought conversion to commercial or mixed use development. Retailers showed less preference for upcoming mall projects due to uncertainty with regard to the malls’ launch and lack of immediate catchments. There was also a slowdown in leasing activities and were mostly restricted to the established malls. Rentals across various malls registered significant decline in the range of 12-25%. Moreover, existing malls are also likely to witness some re-negotiations in the rentals and churn. MAIN STREET DEVELOPMENT The city’s main streets witnessed a correction in the rentals during 1Q 2009. Elgin Road and Theatre Road registered a 10% drop in the rentals over the previous quarter. The high streets also witnessed exits of significant retailers from prominent locations. This is mainly attributable to the unjustifiably high price points in respect to sales. Locations with established catchments in South Kolkata and adjoining areas registered some activity in terms of both leasing as well as retailers’ interest. OUTLOOK Kolkata is likely to witness a further correction in the rental values across both the malls and main streets. A few malls across certain locations may witness exits of more retailers and increased pressures on the rentals to sustain operations. Malls in Kolkata are likely to witness an increase in vacancy levels unless the footfalls convert to sales. Malls with affordable rentals and established catchments are likely to see interest from retailers. Value retail and discount segments will continue to command a significant share of the market pie; seeing increased interest from retailers to enter the segment.
The Essay on Erx (Electronic Prescribing/E-Prescribing) Market
Electronic prescribing can be considered as one important aspect of a larger technological transformation in the healthcare industry. Electronic prescribing is rapidly becoming a standard of practice in the developed countries of the world and a significant rise is seen in the adoption rate among hospitals and office-based prescribers. eRx empowers more informed decision making by making patient ...
ECONOMIC INDICATORS
LATEST RELEASE Real GDP Growth CPI Growth (UNME)* Tourist Arrival Growth Stock Market Growth (BSE) Oct 08 – Dec 08 Jan 09 Dec 08 Jan 09 – Mar 09 5.3% 10.4% -12.5% -0.1% 2006 9.6% 6.5% 13.5% 46.3% 2007 9.0% 5.9% 14.3%**
KEY TRANSACTIONS (MALLS & MAIN STREETS)
PROPERTY BIPL Omega, Salt Lake South City Mall South City Mall TENANT Barbecue Nation Aftershock Crocs SQ FT 12,000 1,850 650
MAJOR NEW MALL SUPPLY IN THE NEXT 6 MONTHS
PROJECT NAME City Center II Block by Block LOCATION Rajarhat Rajarhat SBUA (SQFT) 480,000 215,000 DATE OF OPENING 3Q 09 3Q 09
PRIME MAIN STREET RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR Park Street Camac Street Elgin Road Theatre Road 245 268 210 204 US$ 4.8 5.3 4.1 4.0 € 3.6 4.0 3.1 3.0 % GROWTH (Local Measurement) 1 YEAR 3 MONTH 0% 0% -10% -10% -9% 0% -10% -12% SHORT TERM TREND
The Essay on Foodservice In Ireland Market Growth Greater
The Irish Foodservice Market has grown by over 50% since 1997. The market value is now estimated to be IRl b 1. 1 billion at caterer's purchase prices. A number of factors have contributed to this growth in recent years, related to demographic and lifestyle changes and greater economic prosperity. Key factors include the buoyant Irish economy coupled with increased consumer spending. The profound ...
PRIME MALL RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR South Kolkata Salt Lake Rajarhat Elgin Road 306 425 120 315 US$ 6.0 8.4 2.4 6.2 € 4.5 6.3 1.8 4.7 % GROWTH (Local Measurement) 1 YEAR 3 MONTH -12% -15% -25% -19% -18% -15% -1% -22% SHORT TERM TREND
Note: Conversion Rate: USD = INR 50.86; Euro = INR 67.44 Note: Rentals mentioned are for ground floor premises on carpet area, for vanilla retailers Source: Cushman & Wakefield Research
LEGEND
46.7%
Market Rising Market Falling Market Stagnant, likely to Strengthen Market Stagnant, likely to Weaken Market Stagnant
Source: Central Statistical Organization, Labour Bureau & Ministry of Tourism, India * Consumer Price Index Growth for Urban Non-Manual Employees ** Revised Estimates Note: Real GDP growth calculated as per financial year; while CPI, Tourist Arrival and Stock Market growth given as per calendar year
For industry-leading intelligence to support your real estate and business decisions, go to Cushman & Wakefield’s Knowledge Center at www.cushmanwakefield.com/knowledge Apeejay Business Centre, Apeejay House, Block A 8th floor, 15 Park Street, Kolkata 700 016 Tel: +91 33 2217 1136 www.cushmanwakefield.com
This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. ©2009 Cushman & Wakefield, Inc. All rights reserved.
MARKETBEAT
MUMBAI RETAIL REPORT
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
1Q09
MALL DEVELOPMENT In 1Q 2009, two malls became operational in Mumbai adding approximately 305,000 sq.ft. of fresh mall space. The new supply was entirely concentrated in the suburban locations of the city. While K-Star mall (180,000 sq.ft.) commenced business at Chembur, R-City Centre at Ghatkopar became partially operational with Pantaloon, Big Bazaar and Lifestyle as anchors. Average mall rentals in established markets like Lower Parel and Malad remained stable on account of prevalent demand. However other micro markets like Andheri, Mulund, Ghatkopar and Thane witnessed significant correction. Goregaon witnessed a drop of 42% in rental values compared to 4Q 2008 due to the sharp drop in demand owing to low sales. Vashi too witnessed a notable correction due to consistent slowdown in demand and higher vacancy rates. Many existing malls went through renegotiations with their tenants. As a result while some malls lowered the existing rental, a few engaged in alternative approaches like revenue share with retailers. MAIN STREET DEVELOPMENT 1Q 2009 witnessed some sporadic leasing activities on the main streets. Luxury car brand Audi opened its first showroom in Mumbai at Worli, while Mitsubishi inaugurated its second showroom at Atria mall.
The Essay on The Role of Money Market in the Econmi Growth of Nigeria
The financial markets are types of markets designed for the creation and disposition of financial assets. There are two sections of the financial markets in Nigeria, namely: money market and capital market (Central Bank of Nigeria-CBN, 2004; 2007). A financial asset is created when one party in exchange for cash issues a receipt of acknowledgement which entitles the holder a claim of pecuniary ...
With opening of these luxury car showrooms and existing presence of Rolls Royce, Worli has emerged as a much sought destination of luxury car showrooms in Mumbai. Aroma, an Australian coffee chain, also opened its first outlet in India at Powai. Additionally Linking Road witnessed opening of new outlets of Puma and Firangi Paani. During 1Q 2009, all main streets across Mumbai witnessed negative growth. Highest correction was recorded in Colaba Causeway followed by Breach Candy and Linking Road. Drop in rental values in these markets can be attributed to overall slowdown in demand and increasing vacancy rates in these micro markets. OUTLOOK Over the next 6 months, almost one million sq.ft. of mall space is expected to become operational in the suburban and peripheral locations of Mumbai. Most of the upcoming supply will be in phased development, parts of which are already operational. Upcoming supply and restrained leasing activity could lead to further correction in mall rental values over the next 3-6 months. Main street rental values are expected to witness further softening on account of subdued demand and increasing vacancies in the main streets.
ECONOMIC INDICATORS
LATEST RELEASE Real GDP Growth CPI Growth (UNME)* Tourist Arrival Growth Stock Market Growth (BSE) Oct 08 – Dec 08 Jan 09 Dec 08 Jan 09 – Mar 09 5.3% 10.4% -12.5% -0.1% 2006 9.6% 6.5% 13.5% 46.3% 2007
The Term Paper on The construct lifestyle in market segmentation
Keywords Lifestyles, Market segmentation, Consumer behaviour, Tourism Abstract The swift and wide-ranging changes that present-day society is undergoing are leading to an increasing personalization in consumer behaviour patterns. These are increasingly less well explained by socio-demographic and economic criteria. This effect seems to be particularly well reflected in tourism. As one of the ...
KEY TRANSACTIONS (MALLS & MAIN STREETS)
PROPERTY R-City Centre, Ghatkopar Thane Worli TENANT Lifestyle Reliance Mart Audi SQ FT 60,000 40,000 6,000
MAJOR NEW MALL SUPPLY IN THE NEXT 6 MONTHS
PROJECT NAME Korum Metro Junction R-City Centre LOCATION Thane Kalyan Ghatkopar SBUA (SQFT) 450,000 350,000 275,000 DATE OF OPENING 2Q 09 3Q 09 2Q 09
PRIME MAIN STREET RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR Linking Road Kemps Corner / Breach Candy Colaba Causeway Lokhandwala, Andheri Fort Fountain Vashi Thane 550 500 370 330 400 220 200 US$ 10.8 9.8 7.3 6.5 7.9 4.3 3.9 € 8.2 7.4 5.5 4.9 5.9 3.3 3.0 % GROWTH (Local Measurement) 1 YEAR 3 MONTH -27% -11% -38% -3% 0% -12% -9% -59% -47% -61% -15% -11% NA NA SHORT TERM TREND
PRIME MALL RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR Lower Parel Malad Link Road Andheri (W) Mulund 480 525 400 290 290 185 215 215 US$ 9.4 10.3 7.9 5.7 5.7 3.6 4.2 4.2 € 7.1 7.8 5.9 4.3 4.3 2.7 3.2 3.2 % GROWTH (Local Measurement) 1 YEAR 3 MONTH 0% 0% 0% -6% -42% -23% -25% -10% -31% 0% -4% -19% -24% -38% -36% NA SHORT TERM TREND
9.0% 5.9% 14.3%** 46.7%
Goregaon Vashi Ghatkopar Thane
Source: Central Statistical Organization, Labour Bureau & Ministry of Tourism, India * Consumer Price Index Growth for Urban Non-Manual Employees ** Revised Estimates Note: Real GDP growth calculated as per financial year; while CPI, Tourist Arrival and Stock Market growth given as per calendar year
Note: Conversion Rate: USD = INR 50.86; Euro = INR 67.44 Note: Rentals mentioned are for ground floor premises on carpet area, for vanilla retailers Source: Cushman & Wakefield Research
LEGEND
Market Rising Market Falling Market Stagnant, likely to Strengthen Market Stagnant, likely to Weaken Market Stagnant
For industry-leading intelligence to support your real estate and business decisions, go to Cushman & Wakefield’s Knowledge Center at www.cushmanwakefield.com/knowledge 1st Floor, Mafatlal House Padma Bhushan H. T. Parekh Marg Churchgate, Mumbai – 400 020 Tel: +91 22 6657 5555 www.cushmanwakefield.com
This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. ©2009 Cushman & Wakefield, Inc. All rights reserved.
MARKETBEAT
PUNE RETAIL REPORT
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
1Q09
MALL DEVELOPMENT Pune witnessed no new addition to mall supply in 1Q 2009. The overall economic downturn has resulted in slowdown in the construction of various projects. A 100,000 sq.ft. of mall development which was deferred from 4Q 2008 to 1Q 2009, has been further postponed and is expected to commence operations only by 3Q 2009. Pune witnessed significant decline in mall rentals in most micro markets during 1Q 2009 as against the stable quarter-on-quarter growth in 4Q 2008. Subdued demand and weak market sentiment resulted in a decline in rentals with the Bund Garden Road witnessing the steepest drop of approximately 25%. Limited leasing activity on Ganeshkhind Road pushed the vacancy levels up in this micro market, resulting in rentals decline to the tune of 22%. MG Road however continued to witness stable rentals due to lack of available leasable space. The overall vacancy levels in malls across the city were recorded at almost 17%. MAIN STREET DEVELOPMENT Reduced demand has impacted the main street rental values with all the micro markets registering a decline in 1Q 2009. Prominent micro markets such as JM Road, MG Road and Aundh witnessed decline in the range of 2126%. Rental values on JM Road, which had peaked in mid 2008, recorded the highest decline of 26% over the previous quarter. FC Road recorded the lowest decline of 5% in rental values over the last quarter. OUTLOOK Mall supply of approximately 100,000 sq.ft. is expected to enter the market in the next 3-6 months. The construction activity in the upcoming malls has slowed down due to slow leasing activity in 7-8 prominent upcoming malls. Retailers might take time to choose the mall they would like to be part of. However, rental values on MG Road may remain stable due to existing demand and lack of available leaseable space. Leasing activity on high streets would also be at a slower pace further putting downward pressure on the rental values in short to medium term.
ECONOMIC INDICATORS
LATEST RELEASE Real GDP Growth CPI Growth (UNME)* Tourist Arrival Growth Stock Market Growth (BSE) Oct 08 – Dec 08 Jan 09 Dec 08 Jan 09 – Mar 09 5.3% 10.4% -12.5% -0.1% 2006 9.6% 6.5% 13.5% 46.3% 2007 9.0% 5.9% 14.3%**
KEY TRANSACTIONS (MALLS & MAIN STREETS)
PROPERTY Kakade Centerport Nullstop TENANT Next Café Coffee Day SQ FT 3,600 900
MAJOR NEW MALL SUPPLY IN THE NEXT 6 MONTHS
PROJECT NAME Jewel Square LOCATION Bund Garden Road SBUA (SQFT) 100,000 DATE OF OPENING 3Q 09
PRIME MAIN STREET RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR M.G Road J.M Road F.C Road Koregaon Park Aundh Bund Garden Road 260 240 200 150 140 210 US$ 5.1 4.7 3.9 2.9 2.7 4.1 € 3.9 3.6 3.0 2.2 2.1 3.1 % GROWTH (Local Measurement) 1 YEAR 3 MONTH -21% -26% -5% -17% -22% -7% -35% -37% -17% -33% -30% -13% SHORT TERM TREND
PRIME MALL RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR M.G Road Bund Garden Road/ Koregoan Park Ganesh Khind Road Nagar Road 380 240 140 170 US$ 7.5 4.7 2.8 3.3 € 5.6 3.6 2.1 2.5 % GROWTH (Local Measurement) 1 YEAR 3 MONTH 0% -25% -22% -6% 9% -31% -36% -6% SHORT TERM TREND
Note: Conversion Rate: USD = INR 50.86; Euro = INR 67.44 Note: Rentals mentioned are for ground floor premises on carpet area, for vanilla retailers Source: Cushman & Wakefield Research
LEGEND
46.7%
Market Rising Market Falling Market Stagnant, likely to Strengthen Market Stagnant, likely to Weaken Market Stagnant
Source: Central Statistical Organization, Labour Bureau & Ministry of Tourism, India * Consumer Price Index Growth for Urban Non-Manual Employees ** Revised Estimates Note: Real GDP growth calculated as per financial year; while CPI, Tourist Arrival and Stock Market growth given as per calendar year
For industry-leading intelligence to support your real estate and business decisions, go to Cushman & Wakefield’s Knowledge Center at www.cushmanwakefield.com/knowledge Unit No. 804, 8th Floor, B-Wing, ICC Trade Tower Senapati Bapat Road, Pune – 411 016 Tel: +91 20 4003 3223 / 26 www.cushmanwakefield.com
This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. ©2009 Cushman & Wakefield, Inc. All rights reserved.
MARKETBEAT
AHMEDABAD RETAIL REPORT
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
1Q09
MALL DEVELOPMENT Ahmedabad witnessed no fresh mall supply in 1Q 2009. Owing to subdued demand, the construction of retail projects remained limited. Some of the earlier announced retail developments may get converted into office or residential spaces. Continuing with the trend of the previous quarter, Ahmedabad witnessed decline of about 16-36% in mall rental values in 1Q 2009. Kankaria Lake witnessed the highest drop of approximately 36% in mall rental values over 4Q 2008 owing to low market attractiveness coupled with almost no demand for retail space. Micro markets of Sarkhej Gandhinagar Highway which has highest number of malls, also experienced a decline of about 25% in rental values due to receding demand for retail space and high vacancy rates in existing malls. Drive-in Road and Vastrapur micro markets too recorded a rental decline of about 18% and 16% respectively. MAIN STREET DEVELOPMENT In 1Q 2009 Ahmedabad witnessed a drop in main street rental values in the range of 18-29% across all micro markets over the previous quarter. Consistently low sales have forced retailers to rework their expansion plan which has slowed the pace of leasing activity resulting in a drop in main street rental values across all micro markets. C.G Road and Satellite Road witnessed a rental decline of 29% and 18% respectively primarily attributable to the unviable business conditions affecting the demand for retail space. On account of consistent decline in the rental values across the main streets, the current rental values were observed to fall to the 2005-06 levels. OUTLOOK The retailers are re-assessing the business potential in the city resulting in the slowed demand for take-up of retail space. The two projects scheduled to commence operations in next six months may also see churn in the tenant mix line up from the earlier commitments. Ahmedabad is likely to witness a further softening in the rental values across malls and main streets in short to medium term across selected micro markets due to reduced consumer spending impacting the demand for retail space. The slow down in the construction activity of the mall spaces may help boost demand for space on prime main streets.
ECONOMIC INDICATORS
LATEST RELEASE Real GDP Growth CPI Growth (UNME)* Tourist Arrival Growth Stock Market Growth (BSE) Oct 08 – Dec 08 Jan 09 Dec 08 Jan 09 – Mar 09 5.3% 10.4% -12.5% -0.1% 2006 9.6% 6.5% 13.5% 46.3% 2007 9.0% 5.9% 14.3%** 46.7%
KEY TRANSACTIONS (MALLS & MAIN STREETS)
PROPERTY Shyamal Char Rasta Off C.G Road Off C.G Road TENANT Brand Factory Reliance Footprint Reliance Jewellery SQ FT 30,000 8,000 5,000
MAJOR NEW MALL SUPPLY IN THE NEXT 6 MONTHS
PROJECT NAME Acropolis Venus Square LOCATION SG Highway C.G Road SBUA (SQFT) 500,000 150,000 DATE OF OPENING * *
* Due to limited uptake of retail space and retail brands delaying their fit outs, it’s difficult to predict the actual date of opening of these malls, though the superstructure is ready.
PRIME MAIN STREET RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR C.G Road Law Garden Satellite Road S.G Highway 110 80 70 60 US$ 2.2 1.6 1.4 1.2 € 1.6 1.2 1.0 0.9 % GROWTH (Local Measurement) 1 YEAR 3 MONTH -29% -24% -18% -20% -42% -38% -33% -33% SHORT TERM TREND
PRIME MALL RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR Vastrapur S.G Highway Drive-in Road Kankaria Lake 130 90 70 45 US$ 2.6 1.8 1.4 0.9 € 1.9 1.3 1.0 0.7 % GROWTH (Local Measurement) 1 YEAR 3 MONTH -16% -25% -18% -36% -35% -41% -33% -55% SHORT TERM TREND
Note: Conversion Rate: USD = INR 50.86; Euro = INR 67.44 Note: Rentals mentioned are for ground floor premises on carpet area, for vanilla retailers Source: Cushman & Wakefield Research
LEGEND
Market Rising Market Falling Market Stagnant, likely to Strengthen Market Stagnant, likely to Weaken Market Stagnant
Source: Central Statistical Organization, Labour Bureau & Ministry of Tourism, India * Consumer Price Index Growth for Urban Non-Manual Employees ** Revised Estimates Note: Real GDP growth calculated as per financial year; while CPI, Tourist Arrival and Stock Market growth given as per calendar year
For industry-leading intelligence to support your real estate and business decisions, go to Cushman & Wakefield’s Knowledge Center at www.cushmanwakefield.com/knowledge 1st Floor, Maftalal House, Padma Bhushan H. T. Parekh Marg Churchgate, Mumbai – 400 020 Tel: +91 22 6657 5555 www.cushmanwakefield.com
This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. ©2009 Cushman & Wakefield, Inc. All rights reserved.
MARKETBEAT
BANGALORE RETAIL REPORT
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
1Q09
MALL DEVELOPMENT Bangalore did not witness any fresh mall supply in the first quarter of 2009. The Collection at UB City, Vittal Mallya Road, saw the launch of Kimaya Avenue; while the Total Mall on old Airport Road saw a few more outlets (McDonald’s, Pepe, Black, YLG, etc.) becoming operational. In the absence of leasing volumes (in addition to a low churn-out) in the city’s malls, rental trends appeared stable over the quarter. Rental values of upcoming malls, however, witnessed softening in 1Q 2009. MAIN STREET DEVELOPMENT A recent trend saw retail activity being relocated to adjoining roads from main streets that have been affected by the ongoing Bangalore Metro construction work resultantly affecting rentals. Cases in point include MG Road and CMH Road, where the former witnessed old stores such as Nalli’s relocating to Magrath Road in the off CBD region, while a few stores and popular eateries have either exited CMH Road or relocated. Another trend has seen rentals of traditional main streets like Brigade Road and Commercial Street having remained stable even in these market conditions, while those of comparatively emergent locations like Vittal Mallya Road, Indiranagar – 100 Feet Road and Koramangala – 80 Feet Road have depreciated quite steeply. This demonstrates the existing demand for established high streets. Suburban main streets in the south and east, on the other hand, witnessed average corrections of nearly 23% over last quarter and 37% over the past year. Unviable rental price points at these locations, which had peaked around 3Q 2008, is a major cause of this correction. OUTLOOK Bangalore is likely to see about 2 million sq.ft of mall supply in 2009, of which aproximately 0.3 million sq.ft. is expected in the Whitefield micro market by 2Q 2009. The limited supply set to come in by the year-end together with the lack of large spaces at operational malls will keep high streets and existing malls active. But the correctional phase of both mainstreet and mall rentals will most likely continue in the mid term. This would translate into a healthy sectoral growth as values become more viable for retailers.
ECONOMIC INDICATORS
LATEST RELEASE Real GDP Growth CPI Growth (UNME)* Tourist Arrival Growth Stock Market Growth (BSE) Oct 08 – Dec 08 Jan 09 Dec 08 Jan 09 – Mar 09 5.3% 10.4% -12.5% -0.1% 2006 9.6% 6.5% 13.5% 46.3% 2007 9.0% 5.9% 14.3%** 46.7%
KEY TRANSACTIONS (MALLS & MAIN STREETS)
PROPERTY Magrath Road Jayanagar, 11th Main, 3rd Block The Collection, UB City, Vittal Mallya Road Prestige Emporium, MG Road Total Mall, Old Airport Road TENANT Lavanya Nalli & Nalli Next Prince Jewellery Kimaya Avenue Splash McDonald’s SQ FT 20,000 10,000 8,000 8,000 5,400
MAJOR NEW MALL SUPPLY IN THE NEXT 6 MONTHS
PROJECT NAME Prestige Ozone Mantri Mall LOCATION Whitefield Malleshwaram SBUA (SQFT) 300,000 600,000 DATE OF OPENING 2Q 09 3Q 09
PRIME MAIN STREET RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR MG Road Brigade Road Commercial Street 100 Feet Road, Indiranagar Jayanagar 4th Block, 11th Main Sampige Road, Malleswaram Koramangala 80 Feet Road Vittal Mallya Road New BEL Road 180 320 225 155 205 95 125 215 105 US$ 3.5 6.3 4.4 3.0 4.0 1.9 2.5 4.2 2.1 € 2.7 4.7 3.3 2.3 3.0 1.4 1.9 3.2 1.6 % GROWTH (Local Measurement) 1 YEAR 3 MONTH 0% -6% 0% -28% -9% 0% -17% -16% 0% -25% -9% -1% -42% -22% -28% -32% -33% -24% SHORT TERM TREND
PRIME MALL RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR Koramangala Magrath Road Cunningham Road Mysore Road Vittal Mallya Road 400 350 210 165 375 US$ 7.9 6.9 4.1 3.2 7.4 € 5.9 5.2 3.1 2.5 5.6 % GROWTH (Local Measurement) 1 YEAR 3 MONTH -18% -5% -7% 0% 0% -18% -5% -7% 0% NA SHORT TERM TREND
Source: Central Statistical Organization, Labour Bureau & Ministry of Tourism, India * Consumer Price Index Growth for Urban Non-Manual Employees ** Revised Estimates Note: Real GDP growth calculated as per financial year; while CPI, Tourist Arrival and Stock Market growth given as per calendar year
Note: Conversion Rate: USD = INR 50.86; Euro = INR 67.44 Note: Rentals mentioned are for ground floor premises on carpet area, for vanilla retailers Source: Cushman & Wakefield Research
LEGEND
Market Rising Market Falling Market Stagnant, likely to Strengthen Market Stagnant, likely to Weaken Market Stagnant
For industry-leading intelligence to support your real estate and business decisions, go to Cushman & Wakefield’s Knowledge Center at www.cushmanwakefield.com/knowledge 4th Floor, Pine Valley Embassy Golf Links Business Park Intermediate Ring Road, Bangalore 560 071 Tel: +91 80 4046-5555 www.cushmanwakefield.com
This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. ©2009 Cushman & Wakefield, Inc. All rights reserved.
MARKETBEAT
HYDERABAD RETAIL REPORT
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
1Q09
MALL DEVELOPMENT Hyderabad witnessed no new mall supply during 1Q 2009. With retailers remaining cautious on new expansion plans, mall developers consequently delayed construction activities. The upcoming GVK One mall in Banjara Hills Road No.1 having mostly been pre-committed by various premium retailers, witnessed low vacancy. On the contrary, availability of leasable retail space was comparatively high in MPM Bonsai mall in Himayathnagar due to lesser pre-lease commitments. MAIN STREET DEVELOPMENT All the main streets in the city barring a few such as Raj Bhavan Road, Abids and Kukatpally witnessed small to mid-size space up take during the quarter. New entrants mostly in the consumer electronics, ethnic apparel and home furnishing segments indicated a preference for main streets such as Jubilee Hills Road No. 36, Punjagutta and Begumpet. From the previous quarter, rentals remained largely stable till February and finally dropped in March by 5 to 20% across main streets barring Abids and Kukatpally where rentals remained stable. Abids, the traditional retail micro market witnessed saturation where as unavailability of matching retail space in Kukatpally led to flattening of rentals. Punjagutta witnessed highest rental decline of 20% followed by MG Road with 17% so as to match expectations of retailers that are ready to commit for available properties. As retailers initiated renegotiations, the main street properties which were signed earlier witnessed drop in rentals. OUTLOOK Rentals in select malls and main streets are expected to moderately weaken by the next quarter. Some cautious retailers may expand by adding factory outlets over the conventional stores to cater to wider base of consumers. Retailers operating with comparatively larger store sizes are expected to take advantage of the current market scenario due to their better rental bargaining position. Due to anticipation of moderate retail space supply in the coming years, lowering of rentals is likely to provide a good opportunity to small as well as large format retailers to establish themselves on main streets. Visibly slow progress in construction activity for various mall projects announced earlier, is likely to result in a shortfall in projected supply for 2010.
ECONOMIC INDICATORS
LATEST RELEASE Real GDP Growth CPI Growth (UNME)* Tourist Arrival Growth Stock Market Growth (BSE) Oct 08 – Dec 08 Jan 09 Dec 08 Jan 09 – Mar 09 5.3% 10.4% -12.5% -0.1% 2006 9.6% 6.5% 13.5% 46.3% 2007 9.0% 5.9% 14.3%** 46.7%
KEY TRANSACTIONS (MALLS & MAIN STREETS)
PROPERTY Begumpet Jubilee Hills, Road No. 36 Punjagutta Jubilee Hills, Road No. 36 TENANT Reliance Trends Croma Croma UCB SQ FT 40,000 13,000 12,800 4,500
MAJOR NEW MALL SUPPLY IN THE NEXT 6 MONTHS
PROJECT NAME GVK One MPM Bonsai LOCATION Banjara Hills Himayathnagar SBUA (SQFT) 450,000 100,000 DATE OF OPENING 2Q 09 2Q 09
PRIME MAIN STREET RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR MG Road SP Road, Begumpet 100 100 US$ 2.0 2.0 2.6 2.6 2.1 2.1 2.4 2.1 2.6 2.4 1.6 1.9 € 1.5 1.5 1.9 1.9 1.6 1.6 1.8 1.6 2.0 1.8 1.2 1.4 % GROWTH (Local Measurement) 1 YEAR 3 MONTH -17% -13% -7% -13% 0% -5% -20% -9% -13% 0% -11% -14% -27% -26% -10% -38% 0% -16% -17% -9% -28% 20% 0% NA SHORT TERM TREND
Raj Bhavan Road, Somajiguda 130 Banjara Hills Abids Himayathnagar Punjagutta Ameerpet Jubilee Hills Kukatpally AS Rao Nagar Madhapur 130 105 105 120 105 130 120 80 95
PRIME MALL RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR NTR Gardens Himayathnagar Banjara Hills, Road No.1 100 90 130 US$ 2.0 1.8 2.6 € 1.5 1.3 1.9 % GROWTH (Local Measurement) 1 YEAR 3 MONTH -29% -25% -28% -9% -28% -42% SHORT TERM TREND
Source: Central Statistical Organization, Labour Bureau & Ministry of Tourism, India * Consumer Price Index Growth for Urban Non-Manual Employees ** Revised Estimates Note: Real GDP growth calculated as per financial year; while CPI, Tourist Arrival and Stock Market growth given as per calendar year
Note: Conversion Rate: USD = INR 50.86; Euro = INR 67.44 Note: Rentals mentioned are for ground floor premises on carpet area, for vanilla retailers Source: Cushman & Wakefield Research
LEGEND
Market Rising Market Falling Market Stagnant, likely to Strengthen Market Stagnant, likely to Weaken Market Stagnant
For industry-leading intelligence to support your real estate and business decisions, go to Cushman & Wakefield’s Knowledge Center at www.cushmanwakefield.com/knowledge No. 111, 1st Floor, Maximus 2B, Mindspace IT Park Hi Tech City, Madhapur, Hyderabad – 500 081 Tel: +91 40 4040 5555 www.cushmanwakefield.com
This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. ©2009 Cushman & Wakefield, Inc. All rights reserved.
MARKETBEAT
CHENNAI RETAIL REPORT
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
1Q09
MALL DEVELOPMENT Ampa Mall, on Nelson Manikkam Road, which was expected to commence operations in the first quarter of 2009, has been further deferred by two quarters. Mall anchors have initiated fit-out work, while other vanilla formats are in the process of being leased out for the mall to commence operations in the third quarter. Construction activity of Express Avenue mall continued at a steady pace and is expected to commence operations in the later part of this year. Retailers are able to benchmark their revenue potential against other micro-markets and hence are refraining from undertaking any aggressive positioning. Leasing activity in malls has been slow but at the right rental value, retailers are willing to commit to upcoming mall space. MAIN STREET DEVELOPMENT Although rentals remained relatively stable in the first quarter, barring Purusavakam, Adyar & North Usman Road, the number of transactions across Chennai main streets was limited owing to a conservative expansion mode among retailers. Demand for space has been low and expansion plans on the high streets remained limited to few micro markets namely Adyar, Velachery Bypass Road, Pondy Bazaar and T Nagar which boast of large catchments and robust footfalls. After the sharp correction witnessed during the previous year owners are now showing resistance to dropping rentals further while the retailers are not confident of being able to run profitable business operations even at the corrected rental values. Additionally tenants have shown a preference for the revenue share model with a minimum guarantee instead of fixed rentals. OUTLOOK While vacancy levels in malls have historically been very low, the additional mall supply expected this year is likely to cause a drop in the demand for existing mall space. Select retailers may relocate, preferring to mark their presence in the new developments, resulting in a relatively higher vacancy in the currently operational malls. The coming quarters are expected to witness further rental drop across existing and new developments, offering attractive lease terms to lure / retain tenants. Re-negotiations and consolidation of operations can be expected across the city.
ECONOMIC INDICATORS
LATEST RELEASE Real GDP Growth CPI Growth (UNME)* Tourist Arrival Growth Stock Market Growth (BSE) Oct 08 – Dec 08 Jan 09 Dec 08 Jan 09 – Mar 09 5.3% 10.4% -12.5% -0.1% 2006 9.6% 6.5% 13.5% 46.3% 2007
KEY TRANSACTIONS (MALLS & MAIN STREETS)
PROPERTY Anna Nagar Anna Nagar T Nagar MRC Nagar TENANT Girias L.K.S VIP Oriental Cuisine SQ FT 12,000 5,000 3,000 3,000
MAJOR NEW MALL SUPPLY IN THE NEXT 6 MONTHS
PROJECT NAME Ampa Mall LOCATION West SBUA (SQFT) 350,000 DATE OF OPENING 3Q 09
PRIME MAIN STREET RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR Nungambakkam High Road Khadar Nawaz Khan Road Cathedral road – RK Salai Usman Road – South Usman Road – North Adyar Main Road Anna Nagar 2nd Avenue Purusavakam High Road 125 150 100 100 80 90 100 70 US$ 2.5 2.9 2.0 2.0 1.6 1.8 2.0 1.4 € 1.8 2.2 1.5 1.5 1.2 1.3 1.5 1.0 % GROWTH (Local Measurement) 1 YEAR 3 MONTH -4% 0% 0% 0% -11% -10% 0% -13% -22% -25% -33% -26% -11% -40% -33% -22% SHORT TERM TREND
PRIME MALL RENTS – 1Q09
LOCATION RENT/SQFT/MTH INR Chennai – Central 220 145 100 US$ 4.3 2.9 2.0 € 3.3 2.2 1.5 % GROWTH (Local Measurement) 1 YEAR 3 MONTH -8% 0% 0% -14% -23% NA SHORT TERM TREND
9.0% 5.9% 14.3%** 46.7%
Chennai – Western Chennai – South
Note: Conversion Rate: USD = INR 50.86; Euro = INR 67.44 Note: Rentals mentioned are for ground floor premises on carpet area, for vanilla retailers Source: Cushman & Wakefield Research
Source: Central Statistical Organization, Labour Bureau & Ministry of Tourism, India * Consumer Price Index Growth for Urban Non-Manual Employees ** Revised Estimates Note: Real GDP growth calculated as per financial year; while CPI, Tourist Arrival and Stock Market growth given as per calendar year
LEGEND
Market Rising Market Falling Market Stagnant, likely to Strengthen Market Stagnant, likely to Weaken Market Stagnant
For industry-leading intelligence to support your real estate and business decisions, go to Cushman & Wakefield’s Knowledge Center at www.cushmanwakefield.com/knowledge Paramount Plaza, 5th Floor # 7A/22 Nungambakkam High Road Chennai – 600 034 Tel: +91 44 4299 5555 www.cushmanwakefield.com
This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. ©2009 Cushman & Wakefield, Inc. All rights reserved.