Three of Mumbai’s high streets have recorded the biggest dip in rentals globally. In an annual survey of retail high streets in 60 countries, Colaba Causeway, Linking Road in Bandra and Kemps Corner have recorded the biggest fall in retail rentals.

According to the survey conducted by global real estate consultants Cushman and Wakefield, world over only three high street locations have had a price correction of over 60 percent. Rentals in Colaba Causeway have fallen by 63.5 percent, Linking Road by 63 percent and Kemps Corner by 60 percent as against rentals last year.

Overall the retail sector in India has witnessed the most negative growth amongst all Asian countries. Rentals in Indian high streets corrected in the range of 17 percent to 63 percent over last year which is much higher than the Asia average of 15 percent. The report, however, adds, “Nonetheless, as far as India and China are concerned, the retail sector is better placed to benefit from an upturn in the economy,given that the supply of modern space is constrained in many areas and a young and growing population is supporting increased demand for high quality retail provision.”

The report pegs the reason for the decline to exorbitant and unsustainable rents that existed in these high streets. For instance, Colaba Causeway in Mumbai had witnessed up to 180 percent increase in rents in 2007-2008 making it unviable for retailers to sustain operations at a time when consumer purchases had reduced.

Jaideep Wahi, director of retail Agency at Cushman and Wakefield in India, terms these three markets as the most hyped up areas. “Rentals here were heated up as retail industry works on projections and topline forecasts two years ago were very different. With the slowdown setting in, retailers started rental negotiations and at places where the landlords refused to lower rates, retailers moved out to cheaper high streets,” said Wahi. He also said the retail market in India has stabilised over the last three months.

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