Rental values on Brigade Road take a dip by 25%
Brigade Road and Mahatma Gandhi Road, are the two areas in Bangalore that are in news, due to the ups and downs in their rental values. Where rental values in Brigade Road have sunk by 25% in the last two years, MG Road has experienced a surge by 25% in the same period. According to traders, business has dropped drastically on Brigade Road while it has climbed the ladder on MG Road.
In 2011, the rent per sq ft in Brigade Road commanded at Rs 440, however, that dropped to Rs 330 in 2012 and Rs 110 in 2013. MG Road, on the other hand maintained a rate of Rs 200 per sq ft in 2011, which picked up to Rs 240 in 2012. A number of shops have closed down on Brigade, which eventually have reduced the returns significantly.
Turning the loss
During the construction of Namma Metro, business on MG road has experienced a little setback.However, the loss incurred was not a major one. At present it is showing signs of improvement.
Brigade Road has shown a sharp decline whereas Jayanagar 4th Phase is moving up at a great pace and the rentals there stand from Rs 250 in 2011 to Rs 330 per sq ft in 2013. In addition to it, Indiranagar 100 ft has also been experiencing increase in rentals from Rs 170 in 2011 to Rs 200 in 2013. Rentals on Commercial Street, have also crumbled down
Main Locations
Areas 2011 2012 2013
Brigade Road 440 330 330
Indiranagar 170 200 200
Koramangala 115 125 125
M G Road 200 240 240
Commercial Street 320 310 310
Jayanagar 4th block 250 330 330
Vittal Mallya Road 200 315 300
According to industry experts, the business on Brigade Road is down since the spread of retails throughout the city have increased incessantly. Areas such as Kammanahalli,Marathahalli,Indiranagar and Koramangala have become the new shopping destination. Moreover a number of shops have shut down on Brigade Road and the shop owners are not willing to pay more rent since they income is comparatively low.
