High Street Rentals Jump 15% in Q3 2024 Amid Tightening Vacancies

High street retail spaces have witnessed a significant surge in demand, with rental prices rising by 15% year-on-year (YoY) in the third quarter of 2024. This increase comes amid tightening vacancies and a slowdown in mall leasing, further underlining the growing dominance of high streets in India’s retail landscape.

According to the latest data from Cushman & Wakefield, high streets accounted for a substantial 68% of the total 1.6 million square feet (MSF) of retail space leased during Q3 2024. Key cities such as Delhi NCR, Bengaluru, Chennai, and Kolkata have driven this trend, with Delhi seeing rental growth of 13-15%, followed closely by Bengaluru at 12-14%. Mumbai, too, reported a more modest growth in rentals of 5-7%, but the overall demand for prime high street locations remains strong. One of the major factors contributing to this uptick is the limited supply of quality mall spaces. With fewer malls being developed, retailers have increasingly turned to high streets as viable alternatives, pushing up rental prices in top urban areas. Hyderabad, Delhi NCR, and Chennai together accounted for 70% of the high street leasing volume, underscoring the concentration of demand in major commercial hubs. Head of Retail and Managing Director of Capital Markets at Cushman & Wakefield, noted, “The Indian retail sector is evolving rapidly, and main streets continue to record high leasing due to limited mall supply. The strong demand-supply dynamic has driven rental growth, particularly in Delhi NCR and Pune.”