8/12/2019 Mumbai Retail 3q13
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Cushman & Wakefield (India) Pvt Ltd1st Floor, Mafatlal
HousePadma Bushan, H T Parekh MargChurchgate, Mumbai 400 020+91 22
6657 5555www.cushmanwakefield.co.in
For more information, contact:Siddhart GoelNational Head -
ResearchTel: +91 22 6657 [email protected]
This report contains information available to the public and has
been relied upon by Cushman & Wakefield onthe basis that it is
accurate and complete. Cushman & Wakefield accepts no
responsibility if this should provenot to be the case. No warranty
or representation, express or implied, is made to the accuracy
orcompleteness of the information contained herein, and same is
submitted subject to errors, omissions, changeof price, rental or
other conditions, withdrawal without notice, and to any special
listing conditions imposed byour principals.2013 Cushman &
Wakefield, Inc.All rights reserved.
Q3 2013MUMBAI, INDIA
RETAIL SNAPSHOT MARKETBEAT
A Cushman & Wakefield Research Publication
ECONOMYIndias real GDP growth was recorded at4.4% in the second
quarter of 2013, decliningby 0.4 percentage point from the
4.8%recorded in the first quarter. The HSBCIndia Composite Output
Index fell from 52.0
in the second quarter to 47.6 in the third quarter, indicating a
slightcontraction. The Indian Rupee touched a record low of
INR68.4against the US Dollar in August 2013. However, it is
currentlytrading in the range of INR62-64. The Consumer Price Index
(CPI)recorded a marginal increase from 9.31% in May 2013 to 9.52%
inAugust 2013. The Reserve Bank of India increased the Repo rate
by0.25 basis point to 7.50% during its last monetary policy review
inSeptember 2013 in an attempt to control the rising
inflation.Recently, Villeroy & Boch AG got a nod from FIPB for
50% equityin a joint venture company for single-brand retail trade,
whilstItalian luxury goods retailer Bulgaris application is
currentlyawaiting approval for entry in India.
SUBURBAN AND PERIPHERAL MAIN STREETSPREFERREDMain steets in
suburban and peripheral locations like Borivali,
Thane and Vashi have witnessed healthy enquiries from retailers
inthe food & beverages (F&B) and apparels categories, but
rentalshave remained steady. Limited availabilities and healthy
demandfrom the apparel and F&B brands for space in Vashi has
resulted inrentals appreciating by approximately 17% during the
quarter.Availabilities at Linking Road created over the past few
quartershave witnessed a steady take-up from the apparel brands
atcompetitive rentals during the quarter.
Main streets of Linking Road and Juhu saw entry of
newinternational brands like CAT Apparel, Delsey, Lacoste, Clarks
andStarbucks. Limited churn and low transaction activity resulted
instable rentals at other main street locations like Kemps
Corner,
Colaba, Lokhandwala Andheri and Fort.RENTALS APPRECIATING IN
LOWER PAREL ANDCORRECTING IN MULUNDDue to limited availabilities in
Lower Parel, mall rentals in themicro-market have appreciated by
10% over the quarter. However,with retailers relocating from Mulund
to Ghatkopar, mall rentalsdeclined by 5-6% during the quarter.
Overall city mall vacancyincreased by 0.3 percentage point during
the review period and wasrecorded at 15.4% at the end of the third
quarter. With malls inother locations witnessing limited churn and
stable vacancies,rentals remained stable during the quarter.
OUTLOOKWith declining availabilities on Linking Road, rentals at
the locationcould witness an appreciation in the upcoming quarter.
Increased
demand for space in Borivali and Thane could also lead to
rentalappreciation. Low vacancies in mall locations like Malad
andGoregaon could result in higher rentals in the upcoming
quarter.As no mall supply is anticipated till 2015, the citys
overall mallvacancy is expected to decrease in the next few
quarters.
ECONOMIC INDICATORS
NATIONAL 2012 2013F 2014F
GDP Growth 5.0% 5.7% 6.5%
CPI Growth 9.3% 9.5% -Private Final Expenditure Growth 12.8%
12.8% 13.2% Govt. Final Expenditure Growth 5.1% - -
Source: MOSPI & RBI
PRIME RETAIL RENTS SEPTEMBER 2013MAIN STREETS INR
SF/MTHEUROSF/YR
US$SF/YR
Q-O-QCHANGE
Y-O-YCHANGE
Linking Road 750 107 144 0.0% -11.8%
Kemps Corner /Breach Candy
440 63 85 0.0% 0.0%
Colaba Causeway 700 99 135 0.0% 0.0%
LokhandwalaAndheri
320 45 61 0.0% 3.2%
Fort Fountain 350 50 67 0.0% 0.0%
Vashi 280 40 54 16.7% 16.7%
Thane 260 37 50 0.0% 0.0%
Borivali LT Road* 370 53 71 0.0% NA
MALLS INRSF/MTH
EUROSF/YR
US$SF/YR
Q-O-QCHANGE
Y-O-YCHANGE
Lower Parel 550 78 106 10.0% 14.6%
Malad 460 65 88 0.0% 0.0%
Link road (AndheriW)
400 57 77 0.0% 0.0%
Mulund 260 37 50 -5.5% -5.5%Goregaon 300 43 58 0.0% 0.0%
Vashi 300 43 58 0.0% 25.0%
Ghatkopar 320 45 61 0.0% 6.7%
Thane 280 40 54 0.0% 0.0%
Note: Asking rents(INR/sf/month) on carpet area of ground floor
Vanilla stores isquotedConversion Rate: US$1= INR 62.44 and Euro 1
= INR 84.46
*Newly Added in 2013
SIGNIFICANT LEASING TRANSACTIONS
PROPERTY LOCATION TENANT SQUARE FEET
Standalone Juhu Starbucks 2,800Standalone Linking Road Cat
Apparel 985
