Bangalore has been ranked fourth in the top 10 list of high streets across eight markets in India, according to a recent survey conducted by global real estate consultancy Knight Frank.
The survey highlighted Bangalore’s exceptional high streets, which provide an enhanced shopping experience for customers.
According to the report, MG Road in Bangalore secured the top position among high streets in India, followed by Somajiguda in Hyderabad ranking second.
Additionally, Linking Road in Mumbai and South Extension in Delhi also made it to the top 10 list of high streets in the country.
The top 10 ranked cities in the order are Bengaluru, Hyderabad, Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Noida, Bengaluru, Bengaluru.
The survey considered various parameters, including accessibility, parking facilities, and a diverse range of retailers, to determine the quality of experience provided to customers across 30 high streets in the top 10 cities of India. The layout and master planning of the high streets played a crucial role in ensuring visibility and attractiveness.
Shishir Baijal, Chairman & Managing Director at Knight Frank India, emphasised the evolving nature of the retail industry and the importance of customer experience.
“As cities in India are modernising, we see many high streets in the country reviving as facilities like access, parking, and store visibility have improved,” he said.
The estimations suggest that high streets will generate significantly higher revenues per square metre than malls in the fiscal year 2023-24.
“High streets offer 100 per cent efficacy due to low maintenance costs, whereas shopping malls’ efficiency can range anywhere between 50-60 per cent depending on the grade of the mall,” he stated.
The survey also revealed that Ahmedabad’s SG Highway boasts the highest spending quotient among all the high streets examined.
According to the survey, the average monthly rents to lease retail space on the high streets vary across the top eight cities. Some of the high streets captured in the survey are the country’s most expensive retail hubs. New Delhi’s Khan Market, Gurugram’s DLF Galleria, and Mumbai’s Linking Road and Turner Road are three high streets in the country where retailers have to shell out hefty rents to maintain brand presence.
Also, certain high-value retail categories, such as electronics, accessories, and home & lifestyle, have a lower presence in micro markets like Connaught Place, Lower Parel, Khan Market, and Colaba Causeway, resulting in a lower spending quotient in these seemingly lucrative markets for retail brands.
According to the survey, Indian high streets occupy only 6 per cent of the total gross leasable area compared to shopping malls. However, high streets demonstrate 100 per cent efficacy due to lower maintenance costs, while shopping malls’ efficiency can range between 50-60 per cent depending on the mall grade.
The trading densities of the top 10 retailer categories across 30 high streets, it was determined that the potential consumption in high streets for FY 2023-24 is estimated to be around USD 2 billion. This represents 19 per cent of the projected potential consumption of USD 11 billion for operational shopping malls during the same period. While high streets may seem to have limited overall consumption potential, when compared on a per square metre basis, the picture changes significantly.
When comparing high streets to shopping malls globally, malls have become popular destinations for family entertainment and shopping, offering a wide range of retail categories under one air-conditioned roof. On the other hand, high streets serve as the heart of neighbourhood shopping and fulfil utilitarian functions. Both formats have distinct characteristics and attract retailers and consumers in different ways, the report said.
Furthermore, it’s worth noting that high streets generally lack entertainment options, comprising only 2 per cent compared to the 20 per cent found in shopping malls.
With the retail industry bouncing back from the pandemic, high streets present various opportunities for retailing, especially with the rise of Phygital or omnichannel retailing.
