Falling Rentals

A huge retail and commercial destination,all prominent national and international brands have set up shop here,such as Adidas,Blackberrys,Bentley,Benetton,Gautier,Levis,Louis Philippe,Reebok and Van Heusen to name a few. However,in spite of being a popular hangout for the young,stores are facing tough times in this economic downturn. Rental rates have reduced drastically to attract potential tenants and buyers.

The current purchase rates range between Rs 19,000 27,0000 per square foot in Atta Market,while the rates for the malls range between Rs 16,000 30,000 per square foot. Rental rates for shops fall between Rs 80 190 per square foot. Rental rates in the malls vary floor by floor. At the Waves Centre Stage mall,the rate on the ground floor is between Rs 200 225 per square foot. A year ago,rental rates zoomed as high as between Rs 300 350 per square foot. The first floor rates are currently between Rs 150 175 per square foot while it was Rs 225 250 per square foot earlier. Second floor rates have seen a smaller reduction; from Rs 150 per square foot to Rs 100 per square foot. Purchase rates have also fallen proportionate to the fall in rental rates,as a potential buyer would consider a transaction by noting the prevailing rate of return on the property,that is the rental rate, said Pradeep Mishra,broker with Sainik Estates. What direction the rates take in future,will depend on how the market responds to the already reduced rates. So far,demand has not taken off as much as expected.

As an area offering relief from Delhis congestion and cheaper rents,Sector 18 is a viable destination for business. The swanky malls and lively clubs are an extension of what is still known as Atta market. While Atta is where residents shop for their daily necessities,malls like Great India Place and Waves Centrestage house the biggest fashion brands. Even if people are buying less in these difficult economic times,the area remains popular for simply lounging around. Elevate,a hip club in the Centrestage mall,is a major attraction for party goers. Fluid is a two-floor bar and nightclub that looks somewhat like an Arctic cavern,with billowing white shapes and blue lighting. Many companies have their offices here. Lunch would never be a problem as there are hordes of wonderful eating joints for those with discerning tastes. Punjabi by Nature,The Fortune Cookie,Maamouchee Bar and The Great Kebab Factory in the Radisson hotel are just some of the attractions. For hardcore foodies such as the Mukherjee of Sector 29,Noida,the varied eating joints of Sector 18 are the biggest draw. Taking a casual walk down to the Sector 18 market at the end of the day is truly relaxing. Some places are more crowded than others but even quiet corners can be found for retired couples like us, said Purnendu Mukherjee. The infrastructure is better than the rest of Uttar Pradesh. Power cuts are common but the backup systems are well in place. Roads are also well developed.