Brigade Road rentals plunge 25 pc; MG Road expensive

Brigade Road rentals plunge 25 pc; MG Road expensive

Mahatma Gandhi Road and Brigade Road are adjacent to each other, but their shopping fortunes are very different now.

If rentals are a sign of being premium, Brigade Road, one of Bangalore’s busiest shopping streets, is no longer premium, thanks to new shopping hubs mushrooming in other parts of the City.

Rentals on Brigade Road have plunged nearly 25 per cent in two years, while they have gone up by 25 pc on MG Road during the same period. Business has come down on Brigade Road, while it has gone up, even if marginally, on MG Road, according to traders.

Brigade Road commanded a rent of Rs 440 per square ft in 2011, but that fell to Rs 330 in 2012 and 2013, by nearly Rs 110. MG Road, on the contrary, commanded a lower absolute price at Rs 200 per square ft in 2011, but that has gone up to Rs 240 in 2012 and 2013, a rise of Rs 40, a study by the City-based real estate consultancy, Cushman and Wakefield, has revealed.

Brigade Road Shops and Establishments Association president Suhail Yusuff told Deccan Herald: “The volume of business on Brigade Road has come down in the last two years. If the returns are low, rents can’t be high.”

Yusuff says business is down because of the spread of retails across the City, primarily in areas like Indiranagar, Kammanahalli, Koramangala and Marathahalli, which have become the new shopping districts. “Many shops have shut down on Brigade Road and new ones have come up, but they are not willing to pay higher rent, because the money they make is not high,” says Yusuff.

Making good the loss

Contrast this with what MG Road Shops and Establishments Association president B Srinath has to say: “Business on MG Road suffered during the construction of the Namma Metro. Now, after its completion, business has picked up by 10 per cent to 15 per cent.

But the losses we made were so high that this small rise has to sustain over the long term to make good the loss. Overall, MG Road is showing positive signs.”

While Brigade Road has seen a sharp plunge, Jayanagar 4th Block is growing at a scorching pace, where rentals have gone up from Rs 250 in 2011 to Rs 330 per square ft in 2013 and is the only area whose rents match the absolute values of Brigade Road.

Indiranagar 100 Feet Road too is doing fairly well with a rise in rentals from Rs 170 in 2011 to Rs 200 in 2013. Koramangala has seen a marginal rise from Rs 115 in 2011 to Rs 125 in 2013.

Vittal Mallya Road, which hosts UB City and J W Marriott Hotel, has seen a sharp rise in rent from 2011 to 2013, from Rs 200 to Rs 300 per square ft. But compared to 2012, when the rent was Rs 315, in 2013, it has fallen by Rs 15.

Rentals on Commercial Street too have fallen from Rs 320 in 2011 to 310 in 2012 and 2013.

A regular visitor to Brigade Road, Paramesh R, now spends more time at Jayanagar and Indiranagar. “I live close to Jayanagar and I would earlier travel to Brigade Road for shopping or restaurant visits. Now, Jayanagar has plenty of options on both fronts.

Moreover, Indiranagar 100 Feet Road is really a brand and restaurant street now. It is the most happening place in town. Koramangala, too, is another option for leisure visits.”

main streets                                 2011     2012    2013

M G Road                                     200    240    240
Brigade Road                              440    330    330
Commercial Street                       320    310    310
Indiranagar 100 ft rd                  170    200    200
Jayanagar 4th block                  250    330    330
Koramangala 80 ft rd                  115    125    125
Vittal Mallya Road                       200    315    300

(Source: Cushman and Wakefield; all figures in Rs per sq ft)

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