South Delhi shop fetches world's highest rent

By M H Ahssan

In the midst of the recession gloom, here are some realty bites to cheer things up. A 133 square feet shop on Safdarjang Road has been auctioned for a rental of a whopping Rs 12,09,000 per month, according to New Delhi Municipal Council's spokesperson, Anand Tiwari. The figure works out to Rs 9,022 per square feet per month which is about ten times costlier than rentals in any other part of the city and by far the highest in the world.

In New York's Fifth Avenue, rental for a shop of the same size is Rs 10,15,000, in Hong Kong's Causeway Bay it is Rs 9,80,000, in Avenue des Champs Elysees in Paris it is Rs 6,25,000 and in Via Montenapoleone of Italy it is Rs 5,40,000.

In India, the most expensive rental area is Khan Market where rent per month for a shop of approximately 133 sq feet would be Rs 1,46,000 followed by South Extension which is Rs 1,06,000 and Connaught Place where it is Rs 89,775.

The Safdarjung Road shop located in Ramgarhia area just opposite All India Institute of Medical Sciences was part of the auction carried out by NDMC at Mandir Marg. Thirty-two units, including shops, stalls and kiosks in various parts of the city, were put up for rental auction.

Said Tiwari: "The reserve rental rate for the shop at Safdarjung measuring 133 square feet was kept at 3 lakh per month. The highest bid for rental purposes was Rs 12,09,000 per month.'' According to sources in NDMC, in 1999, the rent for this shop was around Rs 4-5 lakh.

Another shop at Shankar Market went for a rental of Rs 1,04,000. Said Ashok Gupta, who has a shop in the market: "The rental for the shop is a little higher than it should be. The entry of the shop is not great.''

Out of the 32 units that were put up for auctioning, bids were received for 27 units only. No one came forward to bid for five units. The rental for a kiosk at Golf Links was Rs 30,000 per month. All other shops and stalls were given out on rentals ranging between Rs 40,000 and Rs 1 lakh per month.