DELHI NCR RETAIL JUNE 2019 MARKETBEATS 23.9 msf 15.7% 1.8 msf MALL INVENTORY MALL VACANCY UPCOMING MALL SUPPLY (2019-20) ECONOMIC INDICATORS HIGHLIGHTS 2019 2017 2018 Forecast International brands prefer Delhi-NCR GDP Growth 7.2% 6.8% 7.0% CPI Growth 3.6% 3.5% 3.4% Delhi NCR is the go-to market for international retailers looking to enter India or expand Consumer Spending their existing footprint in the country. Uniqlo has entered the city with three planned 7.4% 8.1% 7.1% Govt Final Consumption 14.2% 9.2% 15.0% stores, while others like Ximi Vogue, Mumuso, Steve Madden, Marks & Spencer, H&M, Expenditure Onitsuka Tiger, Bath & Body Works continued to expand their retail presence. Nyka Source: Oxford Economics, Central Statistics Office and Caratlane opened physical stores with omni-channel retailing continuing to gain traction. Apparel & lifestyle brands were the major demand drivers for retail space amid an ongoing retailer churn. Lifestyle, FabIndia, Allen Solly, Madame, Label Ritu Kumar, MALL SUPPLY / VACANCY # Biba, Meena Bazaar, Wrangler were among the retailers active during the quarter. 5,000 30% 4,000 25% New mall addition in Gurugram in Q2 2019 20% 3,000 15% With a refurbished mall opening its doors, Gurugram recorded new mall supply addition 2,000 10% of 250,000 sf during Q2, taking NCR retail inventory to 23.9 msf. H2 2019 is likely to 1,000 5% add new mall supply of 1.4 msf across Dwarka and Greater Noida West, both being 0 0% 2011 2012 2013 2014 2015 2016 2017 2018 Q1 Q2 large residential catchments with low organized retail penetration. A major mall in 2019 2019 Supply ('000 sf) Vacancy % South Delhi is also undergoing renovation and revamp in retailer mix. Strong retailer Source: Cushman & Wakefield Research demand saw vacancy decline by 70 bps q-o-q to 15.7% in Q2, despite sizeable retailer exits from non-performing malls in West Delhi. Market rents remain largely unchanged Rents for both malls & main streets were largely stable despite visible retailer churn and activity during the quarter. High demand with tight supply in Khan Market main A Cushman & Wakefield Research Publication street saw rents rising by 3.7% q-o-q. We expect a slight upward movement in rents, going forward, on account of prime malls and refurbished ones becoming ready. www.cushmanwakefield.com DELHI NCR RETAIL MARKETBEATS JUNE 2019 Rohan Sharma PRIME RETAIL RENTS # INR EURO US$ Q-O-Q Y-O-Y SF/MTH SF/YR SF/YR CHANGE CHANGE Director, Research MAIN STREETS Tel: +91 124 4695555 Khan Market 1,400 212 242 3.7% 3.7% [email protected] South Extension I & II 700 106 121 0% 0% Lajpat Nagar 250 38 43 0% 0% Connaught Place 1,050 159 181 0% 0% Greater Kailash I, M Block 375 57 65 0% 0% Rajouri Garden 225 34 39 0% 0% Punjabi Bagh 225 34 39 0% 0% Karol Bagh 385 58 66 0% 0% Kamla Nagar 380 58 66 0% 0% Dwarka 450 68 78 0% 0% Vikas Marg 175 27 30 0% 0% DLF Galleria (Gurugram) 675 102 116 0% 0% Sector 29 (Gurugram) 235 36 41 0% -9.6% Sector 18 (Noida) 250 38 43 0% 0% INR EURO US$ Q-O-Q Y-O-Y PRIME RETAIL RENTS# - MALLS SF/MTH SF/YR SF/YR CHANGE CHANGE South Delhi 600 91 104 0% 0% West Delhi 325 49 56 0% 0% Gurugram 350 53 60 0% 0% Noida 250 38 43 0% 0% Greater Noida 125 19 22 0% 0% Ghaziabad 200 30 35 0% 0% Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted #Market statistics have been recalibrated historically to exclude malls which cannot be categorized in the definition of retail inventory US$ = INR 69.55 € = INR 79.1 SIGNIFICANT LEASING TRANSACTIONS A Cushman & Wakefield PROPERTY LOCATION TENANT SF Research Publication Standalone Building Golf Course Road Shoppers Stop 40,000 Vasant Kunj Uniqlo Cushman & Wakefield (NYSE: CWK) is a leading global real estate Ambience Mall 28,800 services firm that delivers exceptional value for real estate occupiers West Delhi Lifestyle and owners. Cushman & Wakefield is among the largest real estate Moments Mall 18,740 services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, SIGNIFICANT PROJECTS UNDER CONSTRUCTION capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. PROPERTY LOCATION SF COMPLETION Gaur City Mall Noida 750,000 Q4 2019 www.cushmanwakefield.com Vegas Mall Delhi 650,000 Q3 2019 Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy..