Jones
Lang LaSalle Releases Retail Index - Asia Pacific Q3 2013..
Linking
Road, MUMBAI: US Dollar 1,548 per square meter per year
Connaught
Place, DELHI: US Dollar 1,444 per square
meter per year
Jones Lang LaSalle’s new quarterly Retail
Index lists rents of key high street retail
markets in the region
Strong
demand for quality retail space, coupled with limited supply, has supported
high street rents in prime Asia Pacific markets over the third quarter of the
year according to Jones Lang LaSalle’s inaugural quarterly Retail Index.
The
index, which tracks the rental performance of prime retail space across key
markets in Asia Pacific, highlights a stark divergence between the region’s top
performer, Hong Kong, and the other monitored markets, showcasing the unique
characteristics of this highly sought after market.
Tom
Gaffney, Head of Retail for Jones Lang LaSalle in Hong Kong, commented, “Over
the past three years, retail sales in Hong Kong have grown by an average of
about 15% per year which, when compared to the equivalent in European and US
markets, has presented retailers with a promising growth opportunity and an
ideal entry point for expansion into Asia.”
“This
tremendous growth in sales and rentals over the past three years is largely due
to a high demand from retailers, who are looking to establish a presence or
expand their existing footprint in the City, coupled with limited supply – an
imbalance on which landlords have capitalised. Given the extent of demand,
double digit growth in sales, and limited opportunities, it is little wonder
that rents in the Hong Kong market outpace the rest of the region and we
predict this trend will continue well into 2014.”
Looking
ahead, Mr. Anuj Puri, Jones Lang LaSalle’s Head of Retail Asia Pacific and
Chairman & Country Head, Jones Lang LaSalle India comments, “As the
economy in Asia Pacific continues to improve, retail is once again emerging as
a preferred asset class for investors who see consumption as being closely
aligned to the region’s growth. China will witness the strongest growth in the
retail markets of its top 50 cities, as Hong Kong continues to leverage its
proximity to the mainland to fuel its own retail boom. Meanwhile, India still
awaits the new FDI regulations to kick-start investment in the market.”
“However
we are also seeing more retailers expand into The Philippines, Thailand, Sri
Lanka and Indonesia, where the retail market is driven by a growing middle
class and an increasingly young, generously salaried and highly aspirational
population.”
“Retailers
looking to geographically expand their reach within Asia next year should look
at a two pronged approach: vertical penetration into existing markets such as
China, India and Hong Kong; and a flanking strategy for countries such as
Philippines, Thailand, Sri Lanka and Indonesia.”
For Media Contact
Arun
Chitnis
Head – Corporate Communications & Media
Relations
JLL India
Level
6, Amar Avinash Corporate Plaza, Bund Garden Road,
Pune - 411 001.
Tel:
020 - 3093 0441 Fax no: 020 - 40196101
Mob:
+91 96571 29999
Website:
www.joneslanglasalle.co.in
Twitter:
JLLIndia_Realty
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