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Seals removed for good, Lajpat Nagar dons a new look

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Bertrand Repolt

Posted: Feb 25, 2008 at 2219 hrs IST

New Delhi, February 24 Lajpat Nagar is changing. In the last few months, several trendy shops and expensive brands that were a monopoly of Connaught Place, GK-I or South Extension have come up around the central market. Fabindia, Levi’s, Watches and More, which sells Versace and Cerruti watches, have opened shops, and coming soon are Barista, Subway and Ruby Tuesday. The last three are in close touch with local property dealers to find a place in the market.

The main factor responsible for this is definitely de-sealing. The authorities have opened the seals on the buildings along Veer Savarkar Marg and Feroz Gandhi Marg. Under the new master plan prepared in November 2006, these buildings can be entirely used for commercial activities.

Another reason for the rush is the central location of Lajpat Nagar. There is hardly any space left in south Delhi’s other markets. “Almost 15 to 20 per cent of the commercial spaces are still free,” said R K Narang, a local property dealer.

The kind of customers visiting Lajpat Nagar has also evolved. “We have surveyed the area and Lajpat Nagar proved to be a new shopping hub for the middle class,” an employee of Fabindia said. “Absence in Lajpat Nagar would be a strategic mistake for us.”

Real estate prices have also increased manifold. “In the last two years, prices have gone up by 200 per cent,” Narang said. “In 2005, it was still possible to rent a commercial place for Rs 100 per square foot but today’s prices vary between Rs 300 and 400 per square foot,” he added. “Our rent has doubled since the de-sealing drive in 2006,” said Manoj Kumar, manager of the Benetton outlet.

Are the old shops enjoying this new rush? “For the last two months, my shop has been performing better,” said Davinder Pal Singh, owner of a turban shop. Like him, many senior shopkeepers are enjoying the rise of footfalls at Lajpat Nagar. “I have never experienced any pressure from international brands to quit the area,” said Rajeev, manager, Ritu Wears. “Of course, rents are increasing but as long as the turnover is also on the rise, there is no problem,” he added.

“There is no competition as the products I am selling are totally different from international brands; Levi’s does make turbans,” said Davinder Pal Singh. “Even if they offer Rs 6 crore for my shop, I will not leave.”

To survive, however, old shops must take into account the requirements of the new clients. Gulshan Saluja, owner of a tiny toyshop along Veer Savarkar Marg, where rents are the highest, has seen his business going down in the last two years. “More developed and appealing shops are giving me tough competition,” he said.

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