The world may have overcome the economic recession the world over. But its aftershocks still linger on. The recovery seems to be coming in the backdrop of fragile consumer confidence as well as poor availability of finance for businesses and consumers. Therefore the Cushman and Wakefield survey of the most expensive streets across the world shows that more rental areas recorded rental declines than growth.
This survey is useful in getting to know a few important facts –
- State of the economy in terms of recession, depression, growth etc.
- Growth / Decline of the retail industry
- Inflation, Rents and Costs
There has also been a clear difference between prime locations and secondary locations in this case. While secondary locations have suffered as retailers have looked to shut down the unprofitable stores in various locations, primary locations have seen uplift in the growth. This is not limited to just a few places but across the world like East 57th and 5th Avenue, New York, London’s Bond Street, Linking Road in Mumbai, Khan Market in Delhi Central in Hong Kong among others.
Many small retail players have borne the brunt of this crisis. This has resulted in consolidation among the various big and cross – border players. International retailer expansion is an increasingly important driver of the retailer market in prime locations.
Increasing unemployment, increasing consumption patterns and decreasing consumer confidence in the economic system has led to very cautious predictions for the US, Canada and European retail markets. The Asian market has been strongly helped by the increasing stimulus packages handed out by the government.
Linking Road, Mumbai and Khan Market, Delhi are there in the list of the most expensive streets in the world according to this survey. But whoever I have asked, they have pointed out various problems with them which are endemic to any place around India –
- Excessive tons of garbage around
- Complete chaos in the whole marketplace
- Shortage of parking space
- Crass concretization and commercialisation of the surroundings
So the biggest question which comes to mind is
“Is this survey really affecting us in daily life?” The answer is a sad NO.
Can anything be done so that this survey gives us a real picture of the ground situation? Or is it one among those umpteen surveys which don’t make one hell of a difference?