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RETAIL SNAPSHOT
CHENNAI, INDIA
Q2 2014
ECONOMIC OVERVIEW
OUTLOOK
Decline in mall rentals. Due to low demand for existing shopping malls,
city mall vacancy levels will remain stagnant over the next quarter.
Downward bias in mall rentals may be seen in most mall locations in the
coming quarter.
Stable rentals for main streets. Most main streets are expected to
May, HSBCs Composite Output Index for India was noted at 50.7,
registering an expansion from 49.5 in April and 48.9 in March due to new
orders and increased demand. A strong new government at the center led
ECONOMIC INDICATORS
NATIONAL
GDP Growth
2013
4.7%
2014F
5.7%
2015F
6.3%
CPI Growth
10.1%
8.0%
7.0%
2.3%
4.9%
5.7%
2.9%
-0.5%
5.1%
MAIN STREETS
Inflation is expected to remain high until the end of the year due to
MALLS
Chennai CBD I*
Chennai CBD II *
Chennai Western*
Chennai South*
INR
SF/MTH
150
210
140
130
140
150
130
110
150
130
INR
SF/MTH
225
300
200
220
EURO
SF/YR
22
31
21
19
21
22
19
16
22
19
EURO
SF/YR
33
44
29
32
US$
SF/YR
30
42
28
26
28
30
26
22
30
26
US$
SF/YR
45
60
40
44
coupled with high demand from jewelry retailers, led to a 4% quarter-onquarter rental appreciation in both Usman Road-South and Usman Road-
PROPERTY
Phoenix Market City
LOCATION
Velachery
TENANT
Satyam Cinemas
Stand Alone
Royapettah
Reliance Digital
CBD have witnessed high enquiries from jewelry retailers, rentals have
maintained status quo on other main streets.
Y-O-Y
CHANGE
7.1%
5.0%
-6.7%
4.0%
7.7%
0.0%
-7.1%
0.0%
0.0%
-7.1%
Y-O-Y
CHANGE
-6.3%
0.0%
-9.1%
-4.3%
NA
-13.0%
-2.2%
Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted
Conversion Rate US$1= INR 60.12 and Euro 1 = INR 81.79
*Select shopping malls have been considered for calculation of mall rents
floor plates led to a 7% rental decline. Whilst select main streets near the
Q-O-Q
CHANGE
0.0%
0.0%
-6.7%
4.0%
3.7%
0.0%
-7.1%
0.0%
0.0%
0.0%
Q-O-Q
CHANGE
-2.2%
SQUARE FEET
50,000
10,000
PROPERTY
Junction Mall
LOCATION
Rajiv Gandhi Salai
Gold Souk
Vandalur
SQUARE FEET
600,000
COMPLETION DATE
Q4 2015
500,000
Q4 2015
The report contains information available to the public and has been relied upon by Cushman &
Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no
responsibility if this should prove not to be the case. No warranty or representation, express or
implied, is made to the accuracy or completeness of the information contained herein, and same is
subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice,
and to any special listing conditions imposed by our principals.
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