Delhi’s Khan Market has been ranked as the 22nd most expensive main street globally, retaining its position as India’s most expensive high street. The market has registered a seven percent year-on-year rental growth, according to a Cushman & Wakefield report.
The report, which focuses on rental prices in 138 urban and luxury retail locations worldwide, shows that Khan Market has annual rents of $229 per square foot (approximately Rs 19,330).
Notably, Delhi-NCR now hosts India’s top three most expensive retail high streets. Alongside Khan Market, Connaught Place (Delhi) and Galleria Market (Gurgaon) also feature prominently in the APAC rankings, with annual rentals of $158 (Rs 13,335) and $156 (Rs 13,166) per square foot, respectively.
Bengaluru’s Indiranagar saw the strongest rental growth in the Asia-Pacific region, while Anna Nagar in Chennai emerged as the most affordable in the region, according to the report.
“Khan Market’s position among the world’s top retail destinations highlights the resilience and strength of India’s retail sector. Known for its curated mix of premium brands and upscale boutiques, Khan Market attracts affluent shoppers, solidifying its reputation as a high-end retail hotspot,” said Saurabh Shatdal, Managing Director, Capital Markets and Head-Retail-India, Cushman & Wakefield.
The limited availability of retail space in the area creates intense competition, driving rental values higher.
“With malls facing supply constraints, main streets across India are thriving, driven by robust demand and strong rental growth. As of YTD 2024, main streets have recorded leasing of 3.8 million square feet, marking an 11 per cent year-on-year growth,” Shatdal added.
Milan’s Via Montenapoleone, where rents have risen by nearly a third in the past two years, has overtaken New York’s Upper 5th Avenue to become the world’s most expensive retail destination, according to the report.
“Globally, super-prime physical retail spaces remain central to retailers’ strategies, highlighting the enduring importance of vibrant shopping destinations like Khan Market. With India’s robust economic growth and evolving consumer preferences, the country’s retail sector is poised for sustained success,” Shatdal said.
Competitive tension for limited space led to rental growth in 57 per cent (79) of the 138 locations tracked, while declines were seen in only 14 per cent (19) of locations, with the remaining 29 per cent (40) showing flat rents.
This resulted in a global average rental increase of 4.4 per cent. The Americas region performed the strongest with an 8.5 per cent rise, driven by rental growth of nearly 11 per cent in the U.S. – more than double the 5.2 per cent recorded last year.
-IANS