GURGAON: Best exemplifying Millennium City's young and restless spirit, Galleria Market has been positioned 3rd amongst India's most costly retail condominium spaces, after the extra famous Khan Market in Delhi and Linking Road in Mumbai, in a recent actual estate learn about by way of world assets guide Cushman and Wakefield Private Limited. And this is not its first time in India's envy record; the retail marketplace has been a few of the most costly retail condominium spaces for quite a couple of years now, whilst maintaining a steady enlargement price of around 9% year-on-year (YOY).
However, just under the bright light of Galleria's high side road marketplace, is a looming shadow. As it has grown, across the town the one form of retail space that has mushroomed is the mall. And they are now collecting mud.
"Gurgaon doesn't have proper high streets. Galleria is the closest thing to a high street market in the city, with a catchment populated by affluent people. This makes it a preferred retail destination that has maintained steady growth in rentals over the years," said Siddhart Goel, senior director (analysis services), Cushman and Wakefield.
The reasonable rentals for the retail hub are around Rs 875 consistent with sq.ft, which has seen a enlargement of 9.4% YOY in line with the learn about. "The selling rate at Galleria is a high Rs 1 lakh per sq ft. Recently, a 200 sq ft shop was sold for Rs 2 crore, which says a lot about the demand for quality high street retail space," said Praveen Jain, vice-chairman, NAREDCO.
Despite high demand for space, Galleria's high condominium makes it unviable for lots of shops, especially of favor. "At current rates, a fashion brand can't sustain in Galleria. It's dominated mostly by food and beverages (F&B) brands that fetch higher margins, and is typical of Gurgaon's many neighbourhood micro-markets," said Manish Sapra, senior director (retail), Adidas India. The loss of high quality space for world brands is an issue across India, said Sapra. In Gurgaon, that is made worse by way of insufficient supply of standalone retail spaces, and a misplaced business model that has focussed entirely on shops.
According to several other people, Ambience is town's simplest mall with high quality, organised retail space. "In terms of organised retail, Ambience mall stands alone. The demand though is ever-increasing, due to the growing affluent and cosmopolitan customer base with high disposable incomes," said Pankaj Renjhen, managing director (retail services), JLL India.
Once known as India's mall capital, town has struggled with the popularity. "There are only a few developers who have got the mall model right. Consequently, most malls end up as failed projects. It's necessary for developers to reinvent their business model," said Goel.
A common feature of a hit shops is that they function a vacation spot, quite than just a buying groceries centre. "Gurgaon needs more destination malls where one can eat, shop, watch a movie and have an overall experience," said Sapra.
According to data from Cushman and Wakefield, there hasn't been any new shops being evolved of late. The last addition used to be in the fourth quarter of 2011. Average shops rentals are around Rs 375 consistent with sq.ft. The demand for high quality retail space is ever expanding. "In recent times, Gurgaon's retail market has seen immense development, both in terms of infrastructure and cosmopolitan lifestyle. New Gurgaon requires retail space, but lacks better planning and well-developed structures that can be a 'One Stop Destination' for consumers of all age groups to get all their lifestyle and daily needs," said Vineet Jain, CEO, NCR, Future Group.
Among upcoming initiatives, there's DLF Mall of India coming up next to Ambience at the nationwide highway, and Bestech Brahma close to Signature Towers. The more recent sectors are also seeing development of more recent retail initiatives, with 10 initiatives coming up alongside Golf Course Road (extension) on my own.
"Between sectors 81 and 115, retail areas have been planned to cater to residential/office developments. Hence, New Gurgaon has a good mix of commercial and residential projects that offer immense opportunity for retailers," said Ritu Gupta, head (corporate leasing), Vatika Group.
However, just under the bright light of Galleria's high side road marketplace, is a looming shadow. As it has grown, across the town the one form of retail space that has mushroomed is the mall. And they are now collecting mud.
"Gurgaon doesn't have proper high streets. Galleria is the closest thing to a high street market in the city, with a catchment populated by affluent people. This makes it a preferred retail destination that has maintained steady growth in rentals over the years," said Siddhart Goel, senior director (analysis services), Cushman and Wakefield.
The reasonable rentals for the retail hub are around Rs 875 consistent with sq.ft, which has seen a enlargement of 9.4% YOY in line with the learn about. "The selling rate at Galleria is a high Rs 1 lakh per sq ft. Recently, a 200 sq ft shop was sold for Rs 2 crore, which says a lot about the demand for quality high street retail space," said Praveen Jain, vice-chairman, NAREDCO.
Despite high demand for space, Galleria's high condominium makes it unviable for lots of shops, especially of favor. "At current rates, a fashion brand can't sustain in Galleria. It's dominated mostly by food and beverages (F&B) brands that fetch higher margins, and is typical of Gurgaon's many neighbourhood micro-markets," said Manish Sapra, senior director (retail), Adidas India. The loss of high quality space for world brands is an issue across India, said Sapra. In Gurgaon, that is made worse by way of insufficient supply of standalone retail spaces, and a misplaced business model that has focussed entirely on shops.
According to several other people, Ambience is town's simplest mall with high quality, organised retail space. "In terms of organised retail, Ambience mall stands alone. The demand though is ever-increasing, due to the growing affluent and cosmopolitan customer base with high disposable incomes," said Pankaj Renjhen, managing director (retail services), JLL India.
Once known as India's mall capital, town has struggled with the popularity. "There are only a few developers who have got the mall model right. Consequently, most malls end up as failed projects. It's necessary for developers to reinvent their business model," said Goel.
A common feature of a hit shops is that they function a vacation spot, quite than just a buying groceries centre. "Gurgaon needs more destination malls where one can eat, shop, watch a movie and have an overall experience," said Sapra.
According to data from Cushman and Wakefield, there hasn't been any new shops being evolved of late. The last addition used to be in the fourth quarter of 2011. Average shops rentals are around Rs 375 consistent with sq.ft. The demand for high quality retail space is ever expanding. "In recent times, Gurgaon's retail market has seen immense development, both in terms of infrastructure and cosmopolitan lifestyle. New Gurgaon requires retail space, but lacks better planning and well-developed structures that can be a 'One Stop Destination' for consumers of all age groups to get all their lifestyle and daily needs," said Vineet Jain, CEO, NCR, Future Group.
Among upcoming initiatives, there's DLF Mall of India coming up next to Ambience at the nationwide highway, and Bestech Brahma close to Signature Towers. The more recent sectors are also seeing development of more recent retail initiatives, with 10 initiatives coming up alongside Golf Course Road (extension) on my own.
"Between sectors 81 and 115, retail areas have been planned to cater to residential/office developments. Hence, New Gurgaon has a good mix of commercial and residential projects that offer immense opportunity for retailers," said Ritu Gupta, head (corporate leasing), Vatika Group.
Galleria country’s third most expensive retail rental space
![Galleria country’s third most expensive retail rental space]()
Reviewed by Kailash
on
December 01, 2017
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