NEW DELHI: Linking Road in Mumbai has emerged as the most expensive retail destination in India and the 5th most expensive location in Asia, according to a report.
Colaba Causeway, also in Mumbai, showed the strongest annual growth in the world with rents rising over 182 per cent as on June 2008, according to real estate consultancy Cushman & Wakefield's 23rd Annual Main Streets Across the World report released on Wednesday.
Linking Road was also among the top three locations in the world that witnessed highest annual growth in rental values with an increase of 100 per cent between June 2007 and June 2008.
The report is based on a survey conducted in the middle of 2008 across 236 locations in 48 countries across the world.
The report also revealed that India occupied 6 out of 10 positions in Asia in terms of annual growth of rental values.
Explaining the the steep rise in rents, Cushman & Wakefield India Retail Director Rajneesh Mahajan said: "The substantial increase in main street rents was driven by demand from existing retailers upgrading and expanding their space to create flagship stores. Demand was further buoyed by the entry of new international and domestic retailers."
The first half of 2008, however, witnessed rental stability across most micro markets with rents peaking, thereby increasing pressure on store sustainability, he added.
Other retail locations in India that saw a huge jump in rents are Fort/Fountain and Kemps Corner, both in Mumbai.
According to the report, the third quarter of 2008 has been significant for retail real estate as for the first time in the recent past many established locations saw correction in values both in mall and in high streets.