High streets emerge as economic powerhouses, yielding $370 per sq ft annually

High street revenue dominance: High streets across India have emerged as economic powerhouses, demonstrating prowess in revenue generation. According to the latest findings from a Knight Frank report, these bustling retail corridors yield an average of $370 per square foot (sq ft) annually.

Projections for the fiscal year 2024-25 indicate that high streets are poised to contribute nearly $3 billion in potential consumption, surpassing operational shopping centres by a staggering 238 per cent across 29 key cities.

Regional retail power

The latest report has shed light on the significant sway high streets hold over India's retail sector. One striking revelation from the report is the overwhelming presence of Indian businesses on high streets, occupying 87 per cent of retail spaces. 

This preference for local brands highlights a strategic focus on meeting regional preferences and leveraging the historical or cultural significance of these locations.

The data further reveals that tier 1 cities like the National Capital Region (NCR), Bengaluru, and Hyderabad boast the highest number of operational stores on high streets, with iconic locales such as Khan Market in NCR commanding the highest rents, ranging from Rs 1000-1500 per square foot per month.

High streets vs malls

Shishir Baijal, Managing Director of Knight Frank India, stressed the pivotal role high streets play in urban life, noting their superior revenue generation compared to shopping centres. He anticipates a resurgence of prime high streets in the near future, propelled by urban renewal initiatives and the development of new mobility infrastructure.

The report also highlights notable growth in rental rates across various high streets, with Connaught Place in NCR witnessing a 33 per cent YoY increase, followed closely by Bengaluru's Hennur Main Road and Commercial Street.

Dining and accessories trends

Apparel emerged as the dominant retail category on high streets, accounting for 29 per cent of the market share, followed by Food & Beverages at 18 per cent. Accessories constitute 17 per cent, underlining the importance of dining options and impulse shopping in consumer preferences.

Cities like NCR, Bengaluru, and Mumbai stand out for their eclectic mix of regional and international showrooms on high streets, with international-origin brands occupying 13-15 per cent of the real estate footprint.