Rentals of retail spaces in the National Capital Region and Mumbai have fallen by up to 15% in the first half of this year over the past six months on account of low demand and high base effect of last year.

According to global real estate consultant CB Richard Ellis, rentals in the NCR have corrected by about 10% in the first six months over the second half of 2008.

It said the decline was similar to an overall drop of 20-40% from the levels witnessed in the beginning of 2008.

'Prime high-streets and mall spaces continue to be the focus for expansion for retailers as the rentals in these spaces have corrected due to the reduced demand and high rental values,' CBRE said in the report.

The consultant further said that in Mumbai, rentals are showing correction by 10-15% amid limited supply of 'quality' space on some prime high-streets through the first half of 2009.

Times of India