Fire at City Centre Mall in South Mumbai has caused financial burns to shopkeepers in nearby markets. In nearby commercial arcade, shopkeepers on rent have been asked to pay almost double rent from October 23, a day after the fire broke out at City Centre.
By Varun Singh
On Thursday a fire broke out in South Mumbai’s City Centre Mall, on Friday shopkeepers of a nearby commercial arcade were greeted by a notice of rent hike.
The shopkeepers in Nathani Heights Commercial Arcade located at Mumbai Central, were taken by surprise after seeing the notice.
Tenants say the rent hike is almost double than what they were paying earlier.
The notice headers states, new rent rates, per sq ft for Commercial Arcade with effect from October 23, 2020.
For new licensees the rent per sq ft for premium shops on 1st floor is Rs 500 on 2nd floor it is Rs 450.
For non premium shop the rent is Rs 475 on 1st floor and Rs 425 on 2nd floor.
For old tenants and licensees the rent for premium shops on 1st floor is Rs 450 and 2nd floor it is Rs 400.
The rent for non premium shop is Rs 425 on 1st floor and for 2nd floor it is Rs 375.
Apart form this the tenants will have to pay six month rent as deposit and there will be a 5% increase in rent every year.
Agreement will be for three years with a lock-in period of three years.
Saif who has a shop on the second floor of the arcade says, “My rent for a non premium shop which was a little above Rs 17,000 per month, I will now be forced to pay close to Rs 40,000 per month.”
Saif says that most of the shopkeepers are worried that if they do not match the hiked rent they will have to vacate.
According to Saif, shopkeepers were paying half the rent from March and it was to continue till December.
This arrangement was in place, because of lockdown. The sudden increase he claims is because of the fire at City Centre Mall, as the owners have found a reason.
At City Centre Mall and Commercial Arcade, the shopkeepers are mostly in the same business.
According to tenants the hike is because of the opportunity that the owners have found sine the fire broke out at City Centre Mall.
There are 275 shops in the commercial arcade. It is believed that those impacted in fire would be looking for spaces around and thus demand for shops would be high leading to a sudden rent hike.
A representative from Nathani Builders claimed he was aware about rents being hiked, but denied they have got anything to do with the hiking of rents.
“We don’t have any shops we are all sold out. The owners who have these shops and gave them on rent have hiked the rent.”
Representative of Nathani Builders.
Shops at City Centre Mall and those at Commercial arcade sell mobile phone accessories and other ancillary items.
Meanwhile, the fire at the mall has ended up hurting even those who had no shops either on ownership or rent at the mall.
The other fear is that as one particular complex has hiked rent the same would be replicated elsewhere in nearby shopping complexes too.
Many shopkeepers are worried about their survival as the lockdown had impacted them and now heavy rent hike would further push them down.
