Bangalore's high street loses shine

Retail real estate rentals crash 40-50%.

Bangalore's high street shopping areas like Commercial Street, Brigade Road, fourth block in Jayanagar, CMH Road and 100 feet road in Indiranagar are witnessing a crash in the retail real estate rentals by 40-50 per cent.

According to sources in the sector, the sudden slump is the result of the imposition of service tax in the Union Budget. Property owners want to pass on this expense to the hirers. This is making the properties uneconomical and prompting retailers to go in for outright purchase.

Commercial Street, which was commanding Rs 180-200 per sft six months ago, is now quoting at Rs 110-120 per sq ft. As a result around half a dozen properties totalling 20,000 sft of retail space are lying vacant.

Brigade Road, where the rent was ruling at Rs 350-400 per sft six months ago is now getting active quotes at Rs 250-300 per sq ft.

In the residential localities, the CMH Road in Indiranagar has given way to 100 feet road as the prime shopping street.

CMH Road, due to the metro rail route cutting across it, has not seen any rise in retail rental rates. These are currently hovering around Rs 60-70 per sq ft.

On the other hand, the 100 Feet Road with the sudden influx of luxury brands, now commands Rs 110-120 per square feet compared with Rs 60-80 per sft a few months ago. The 100 Feet Road has seen re-designated development, resulting in an explosion of new shops.

In Jayanagar 4th block, retail rents are being quoted at Rs 110-120 per sft compared with Rs 150-180 per sft six months ago.

Over time, standalone malls like Forum, Garuda, Sigma and Prestige Eva, totalling 1 million sft of retail space in the city, have become the choice of retailers and big brands as the malls have addressed the parking space issue and offer a pleasant ambience to shoppers.