City and market analytical reports covering emerging markets in the Asia Pacific region by global real estate solution provider Cushman & Wakefield
International Investment Atlas Summary 2012
Apr 06, 2012
AHMEDABAD, INDIA RETAIL SNAPSHOT
A Cushman & Wakefield Research Publication
India's GDP grew by 6.9% from Jul to Sep 2011. High inflationary conditions and a slowdown in western markets have also impacted the growth momentum. The retail market stood at a point of inflexion with the initial approval for FDI in the multiband sector. MANCHESTER However, the proposal was temporarily suspended thereby dampening market sentiments significantly.
NATIONAL GDP Growth CPI Growth Private Final Expenditure Growth Govt. Final Expenditure Growth
Sources: IMF, Government of India & Reserve Bank of India
2010 8.5% 13.2% 8.6% 16.2%
2011F 7.6% 10.6% 16.0% 13.1%
2012F 7.7% 8.6% 14.9% 14.2%
PREFERENCE FOR MAIN STREETS
Retailers have shown a preference for established main streets in the city. Although rentals have remained stable in the last quarter, Satellite Road and Law Garden have witnessed an increase of 25% and 20% yearon-year primarily due to demand from food and beverage retailers, thus positioning themselves among the most preferred locations in the city. Lower rentals compared to C.G. Road have fuelled demand in locations such as Law Garden and S.G Highway.
FRESH MALL SUPPLY IN AHMEDABAD
Ahmedabad witnessed a fresh mall supply of 700,000 square feet (sf) in the form of Alpha One at Vastrapur. The mall includes anchor stores like HyperCity and Shoppers Stop with retailers such as Nike, Tommy Hilfiger, Pepe Jeans and Samsonite. Modest demand and relatively high vacancy rates have kept rental values unchanged from the last quarter. With the current economic condition exhibiting slow growth, retailers in the city have adopted a wait-and-see attitude for future developments.
Vastrapur S.G Highway Drive-in Road Kankaria Lake
NOTE: Values are quoted on carpet area for ground floor properties of vanilla retailers
Ahmedabad is not expected to witness any new mall supply during the first quarter of 2012. Rental values across malls and main streets are expected to remain stable so as to sustain demand. A majority of the leasing activity is expected to be centred around the main streets due to the preference of retailers. Main street locations such as Satellite Road and C.G road, being the most prominent retail destination in Ahmedabad, have observed increased enquiries from retailers.
SIGNIFICANT LEASING TRANSACTIONS
PROPERTY Venus Atlantas Dev Arc Torquice 5 LOCATION Satellite Road S.G Highway C.G Road TENANT Idea Cellular New York City Reliance Digital SQUARE FEET 40,000 40,000 18,000
SIGNIFICANT PROJECTS UNDER CONSTRUCTION
PROPERTY NA LOCATION NA SQUARE FEET NA COMPLETION DATE NA