CP edging towards the top of shopping destinations?

NEW DELHI: What with India getting labelled the bright sport in the global economy, and commercial real estate showing signs of revival, leading international brands are looking beyond malls and picking up spaces in high street markets.

The latest is Swedish retail giant H&M, which has picked up 28,000 sq feet space in the Capital’s upscale shopping destination, Connaught Place (CP), which makes it the biggest retail outlet in the area . According to real estate experts, the biggest store in CP till now has been the 8,000 sq ft. occupied by United Colours of Benetton.

Retail has been driving a pick-up in the commercial real estate market, according to industry experts. “Retailer demand also remained upbeat across various cities, with prominent global players such as Massimo Dutti, Longchamp, Cole Haan and Hunkemoller making inroads in the country while others such as GAP, H&M, Marks & Spencer and Superdry continued to expand,” the note said.

“CP has been on an upswing for the last couple of years, after all construction activities have ended there. With this space we are confident we will further strengthen the position of CP as the No. 1 high-street shopping district in India,” said Janne Einola, country manager, H&M India .

Amongst high-street markets in Delhi, Connaught Place witnessed a highest rental growth of 6-8% in the first half of calendar year 2016, mainly due to surge in activity by F&B brands.

Rental values rose by 5-7% in South Extension. Prime mall developments across Saket District Center and Vasant Kunj had approximately 11-13% growth over H1. Average rent in Khan market was stagnant and the highest in Delhi NCR at ₹1,250-1,500 per sq feet, followed by CP at ₹950-1,050 per sq feet. On the other hand, malls in Gurgaon and Vasant Kunj were at ₹375-475 per sq feet and ₹400-500 per sq feet.