NATIONAL CAPITAL REGION (NCR)
Both domestic and international players were active in the leasing landscape in H1 2018. Leasing activity was led by accessories’ retailers, followed by jewelry, electronics, furniture and toy companies – with Disney opening three stores this quarter, while Pepperfry and Dyson opened two stores each in Delhi. Retail stores of varied sizes opened outlets across prominent shopping centers and high streets, ensuring that retail activity in the region remained steady. In malls, key deals involved the expansion of brands such as Pepperfry at DLF Mall of India, Noida; Dyson at DLF Promenade, Vasant Kunj; and Urban Ladder at DT Mega Mall, Gurgaon. Meanwhile, MI Experience Store, Starbucks and Kapoor Watch opened new outlets at the high street locations of Connaught Place, Green Park and South Extension, respectively. DLF Chanakya has emerged as a prominent luxury retail destination housing premium retailers such as Mont Blanc, Jaegerlecoultre, Panerai Boutique, Hermes, Ralph Lauren, Ted Baker, Diesel among others.
Delhi-ncr continued to be the gateway for global players that were eyeing high streets to launch/expand their operations. Leading Cash & Carry player - Siam Makro opened its first B2B wholesale store in Delhi at Netaji Subhash Place Metro Station. Other players such as Miniso and Sunar Jewellers also expanded presence across the city’s high streets. In addition, international brand Bath & Body Works opened its first store in the country at Select Citywalk, Saket followed by another store at DLF Mall of India Noida.
Supply addition in NCR in the first six months of
2018 included 32nd Avenue, Gurgaon, a curated F&B and lifestyle destination spread over 0.25 million sq. ft. The development is a part of a larger, 2.5 million sq. ft. mixed-use development. Ambience Mall, Vasant Kunj
added additional FSI to offer more retail area (0.25 million sq. ft.) on the lower ground floor in order to plug the gap that the micro-market had in terms of premium ethnic/ fusion wear for women.
In H1 2018, prime mall developments across all micro-markets in the region such as Saket District Center and those in Noida witnessed a rental increase of 5-8% on a half yearly basis however, locations such as Vasant Kunj and Gurgaon witnessed a steep rental increase of 8-15% on a half yearly basis, largely driven by limited vacancy and strong occupier interest in prime developments.
On the other hand, rental values in the high streets of Khan Market and DLF Galleria increased by 8-17% on a half yearly basis.