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Construction : Web Exclusive | February 2013 | Source : Construction Update

Rents in Kolkata's malls rise due to space crunch

In Kolkata, property rentals at malls and in high-street locations — are moving north thanks to the increasing number of luxury retail brands and shortage of space in existing city malls. According to market sources, rentals in high-street formats (shops other than in malls) have moved up by nearly 30-40 per cent on a monthly basis (till December 2012); while at malls, hikes have been steeper.

Rents increased significantly on the back of continued demand over the month (of December) and retailers expanded following a steady consumer demand, said Mayank Saksena, Managing Director-East, at real estate consultancy firm Jones Lang LaSalle India. Areas like Elgin Road or Park Street — near the city’s Central Business District — are commanding a monthly rate of nearly Rs 200 – 300 a square foot. The hike is around 40 per cent on a month-on-month basis. High-street rentals are generally on a carpet area basis.

Elgin Road itself houses shops by US Polo Association, Calvin Klein and Tommy Hilfiger. Proximity of the Forum Mall has seen the area emerge as the new high-street. Rentals too inched up between Rs 190 and 260 a sq foot per month. Gariahat – yet another prime location – is commanding rentals of nearly Rs 260-300 per sq ft a month.

Absence of space in malls has led to an increase in rentals for high street formats, Vimal Goel, Director, Avani Projects and Infrastructure says.

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