Painting a grim pictue of the retail real estate market, Crisil Research today said retail rentals would further fall an average of six per cent in 2010 due to oversupply of mall spaces. Retail rents fell up to 30 per cent between March to December 2009 as retailers scaled back expansion to save cash during the slowdown.
“Going forward, Crisil Research expects retailers to remain cautious about their expansion plans even as the retail industry shows signs of revival Despite rents reducing realistic levels in malls, retailers are tweaking sizes of stores to ensure viability,’’ Crisil said.
In November 2009, 40-odd micromarkets in the country witnessed a 43 per cent fall in retail rents from its peak. “Retailers are now eyeing the prime high streets and mall spaces for expansion plans, considering rentals in these areas have corrected notably following reduced demand,’’ it said.