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Cushman & Wakefield

Rise of Highstreets and Office-Retail Complexes

Constraints w.r.t. availability of space within the Grade-A mall universe across top-8 cities have proven to be advantageous for highstreets and Office-Retail Complexes (ORCs) across these cities. Brands prefer to either be in quality Grade-A malls or chose to be in prominent highstreets and ORCs as the latter provides high visibility and access to niche customers with good spending capacities. Given the rise in brands wanting to enter and expand across major cities, highstreets have played an important role in offering high visibility locations. Consequently, rental premium across most major highstreets in India have risen over the years. Data suggests that prominent highstreets across the top real estate markets in India have surpassed the peak rentals seen during pre-COVID period (mostly in year 2019). Some of these highstreets have now compare with the priciest ones in the world, particularly Khan Market (New Delhi), Connaught Place (New Delhi), and Linking Road (Mumbai), as per Cushman & Wakefield’s global report, Main Streets Across the World 2023”.

Major high-streets across cities have seen rents cross pre-COVID peaks (INR per SF, per month)

1,000 1,200 1,400 1,600

Q2-2024 Rental

Pre-COVID Peak rental

0 200 400 600 800

C.P.

F.C. Road, Pune

Khan Market, Delhi

Delhi

Source: C&W India Research analysis

Park Street, Kolkata

Kemps Corner, Mumbai

Linking Road, Mumbai

Pondy Bazar, Chennai

Banjaa Hills,

Brigade Road, Bangalore

Indira Nagar, Bangalore

Hyderabad

In parallel, we have been observing strong emergence of Office-Retail Complexes across the top-8 real estate markets in India over the last 7-8 years, until 1H-2024. More than 70 prominent ORC projects have been delivered during this period, and most of them have been successful in attracting quality retail tenants.

Number of new Office-Retail Complexes (ORCs) commencing operations (Cumulative addition over last 8 years)

20 30 40 50 60 70 80

0 10

2016 2016 2017 2018 2019 2020 2021

2022 2024

Source: C&W India Research analysis

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