India’s top high streets offer $2 bn potential consumption, Bengaluru leads the pack
1 min read 10 May 2023, 01:07 PM ISTNCR, Kolkata, and Ahmedabad are the top three markets with a high concentration, with NCR contributing 24% of India’s total occupied modern retail arena - the highest across the top eight markets
PremiumNew Delhi: India’s top 30 high streets, or market locations, account for an estimated $2 billion in potential consumption in the current financial year, according to a report by real estate consulting firm Knight Frank India in association with Phygital Retail Convention 2023, released on Wednesday.
This represents 19% of the potential consumption of $11 billion projected for operational shopping mall stock in FY 2023-24. Bengaluru has emerged as a city with the best high street shopping experience with four of its markets topping the list of India’s top ten high street locations.
“Globally, cities are identified by their high streets, often one of the main attractions of the city, and the brands on these streets - a barometer of the city’s worth on a global platform. But as we evolve, customer experience is the key and due to their traditional nature, high streets often fail to provide amenities like those of shopping centres. However, as cities in India are modernising, we see many high streets in the country reviving as facilities like access, parking, store visibility etc. have improved," said Shishir Baijal, chairman and managing director at Knight Frank India.
The real estate consulting firm estimates that the average per square metre revenues of high streets will surpass those of malls in FY 2023–24. While high streets currently account for only 6% of the total gross leasable area compared to shopping mall stock, they offer better efficiency due to lower maintenance costs. Shopping mall efficiency can range between 50% and 60%, depending on the grade, according to the report.
Knight Frank’s study ranked Bengaluru’s MG Road as the top high street in India, followed by Somajiguda in Hyderabad, Linking Road in Mumbai, and South Extension in Delhi. The research covered 30 high streets across the country’s top eight markets, which collectively have 13.2 million sq ft of high street stock spread across 4,875 retail stores. The firm assessed these markets based on convenience factors such as access, parking facilities, and a diverse assortment of retailers.
“The layout and master planning of the high street define the visibility. Inward looking markets like Khan Market (Delhi) and DLF Galleria (Gurugram) scored very low, whereas markets aligned along the access road like MG Road (Bengaluru), Somajiguda (Hyderabd), Linking Road (Mumbai), Anna Nagar, Park Street and Camac Street (Kolkata) scored high. Ahmedabad and Pune do not house any of the top 10 high streets," it said.
Ahmedabad’s SG Highway has the highest spending quotient amongst the 30 high streets surveyed.
“Contrary to common perception, the top high streets are not the ones demanding the highest rent. High average ticket price retail categories such as electronics, accessories and home and lifestyle that have a lower presence in micro markets like Connaught Place, Lower Parel, Khan Market, Colaba Causeway make the spending quotient low in these seemingly lucrative markets for retail brands," the report said.
NCR, Kolkata, and Ahmedabad are the top three markets with a high concentration, with NCR contributing 24% of India’s total occupied modern retail arena - the highest across the top eight markets
The average monthly rents at high streets vary across the top eight cities. “Despite real estate rent corrections across all asset classes, the post pandemic bounce-back led to numerous transactions being closed at rents higher than previously witnessed. Some of the high streets captured in the survey are the country’s most expensive retail hubs. New Delhi’s Khan Market, Gurugram’s DLF Galleria, and Mumbai’s Linking Road and Turner Road are three high streets in the country where retailers have to shell out hefty rents to maintain brand presence," the report added.
