High street holds lead in rental growth over malls

Stagnant rents are largely confined to grade B, grade C malls: Experts

- PRACHI PISAL

High-street rentals continue to outpace those of malls, as retailers focus on prime locations and are willing to pay a premium for visibility.

Between 2021 and 2025, rental values on prime high street have grown 7-15 per cent annually, driven by strong consumption density and limited new supply, even outpacing grade A malls, which grew by 5-8 per cent, according to Anarock.

Luxury brands alone have accounted for over 40 per cent of high-street leasing as they are willing to pay a premium for visibility, it stated.

Bhavik Bhandari, chief business officer at Ashwin Sheth Group, noted that overall mall rentals have stayed largely flat.

“Retailers are prioritising visibility and brand recall, which high street naturally offer. Over the next 12-24 months, high-street rents should continue to rise steadily, while mall rents will see only modest gains,” he added.

Secondary malls stagnation