While retail real estate is getting warm, cities like Chandigarh emerging as investment options, commercial properties are enticing rents one could only dream of earlier. The commercial hub of the city, Sector 17, where retail space can now cost from Rs 300 to Rs 500 per square feet depending on who takes it.

Esprit, brought to India by Arvind Mills, went for above Rs 500 per square feet, say the property consultants, Manohar Singh and Sons, who clinched the deal for the UK brand.

The most recent retail major to open shop here is the Lee-Dockers combine, marketed by Sports Station, which is paying about Rs 24.8 lakh as monthly rental for a four-floor store, say sources. This is three to five times more than what other commercial hubs of the city could dream of. Many property owners in Sector 17 are rumoured to be keeping their buildings idle expecting a further leap in therentals.

“Companies are willing to pay a bomb for brand visibility, whether they will be able to break-even is not a major concern for them. Having said that, it is wrong to assume that they would not do good business here as niche brands are getting more and more dedicated customers in the city as where you shop from decides your clout in the elite circles,” said a storeowner.

But this is the best that the sector will see, is what most showroom owners feel. “The upcoming malls would scale down Sector 17 rentals,” says Harvinder Singh, a showroom owner in Sector 17. “Though other commercial areas have not been able to take the sheen off Sector 17, malls would certainly attract big retail brands,” he adds.

As of now all the three upcoming malls of the city, DLF, City Emporio and Centra Mall, are vying for the best names in retail, though the per square feet rental in them is said to be a deterrent for many not-so-big brands willing to occupy their retail space. As for the high rentals of the grand-old Sector 17, no one is complaining. The companies are cash-rich and the owners of property have no qualms in milking them.


News published in Financial Express dated Aug 01, 07
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  • Dear friend,

    These were the rates in 2007? How about the rental rates in the same area now? I presume it should be much less in today's downtrend?

    ks2071746
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