Are we really facing economic slowdown?
The answer would be a resounding "NO", if one goes by the recent lease rent at which a small shop measuring just 133 sq ft was auctioned in Safdarjang Road area of South Delhi. (Leased out in Jan 2009)
Believe it or not, but the shop was leased for a whopping monthly rent of USD 24,180 (Rs 12,09,000). This translates into a lease rent of USD 180.44 (Rs 9,022) per sq ft per month.
The rent of the same shop in 1999 was approx between USD 8,000 - 10,000 (RS 4,00,000 - 5,00,000)
So far, Khan Market in Delhi was considered to be the most expensive retail space followed by South Extension and then Connaught Place. Compared to the rent of USD 180.44 (Rs 9,022) per sq ft per month, indicative rents would be around USD 22 (Rs 1,100) per sq ft per month in Khan Market, USD 16 (Rs 800) per sq ft per month in Soth Extension, and USD 13.5 (Rs 675) per sq ft per month in Connaught Place areas of the national capital.
Not only in India, but the rent of USD 24,180 (Rs 12,09,00) per month may be considered as highest anywhere in the world as well. An equivalent 133 sq ft shop, in the most expensive shopping destinations of the world, for example, would cost approximately: USD 20,300 (Rs 10,15,000) in Fifth Avenue area of New York (U.S.), USD 19,600 (Rs 9,80,000) in Causeway Bay area of Hong Kong, USD 12,500 (Rs. 6,25,000) in Champs Elysees area of Paris, and USD 10,800 (Rs. 5,40,000) in Via Montena Pleone area of Milan.
Comparative rents in other expensive shopping areas of the world like Grafton Street in Dublin, New Bond Street in London, Ginza in Japan, and Bahnhofstrasse in Zurich would cost between USD 9,000 and 8,000 (Rs 4,50,000 and Rs 4,00,000) per month.
Source: The Times of India