The city's centre of gravity is moving from the central business district to the suburbs, mimicking a phenomenon seen in Mumbai and Delhi. The star power of Brigade Road and Commercial Street, two of the most renowned high-street locations, is waning. The only high street to hold its own in rental value is Vittal Mallya Road. On the rise are select areas of Jayanagar, Indiranagar and Koramangala.
In the July-September quarter, rental values on Brigade Road registered a decline of about 19% sequentially from the previous quarter. On a year-on-year basis, rental values on Brigade Road plunged by 26% to Rs 325 per sqft, says a report by real estate consultancy firm Cushman
. Industry analysts say this is the largest fall ever reported. In the similar period, rental values on Commercial Street dipped by 8% to Rs 300 per sqft.
Despite the large fall, Brigade Road still tops in rental values, though now it has to share its numero uno
position with Jayanagar 4th Block and 11th Main, and Vittal Mallya Road, both of which command rental values of Rs 325 per sqft. The shift can be seen from the fact that while Brigade Road's per-square-foot rental has fallen from Rs 440 in 2011 to Rs 325, that of Jayanagar 4th Block and 11th Main has risen from Rs 250 to Rs 325 in the same period.