Khan Market in Delhi has been declared as the 22nd most expensive high street globally, reflecting its importance as a retail destination. Known for its mix of premium brands and boutiques, the market commands an annual rent of ₹19,000 per square foot, making it the most expensive retail location in India. The Cushman & Wakefield 'Main Streets Across the World' report highlights Khan Market's significance in the retail sector, attracting shoppers from across the country and beyond.
Khan Market's continued prominence is a testament to the resilience and strength of India's retail sector, which has seen rapid growth in recent years. With a notable 7% year-on-year rental growth, Khan Market's high demand is driven by its unique combination of luxury brands, retail stores, and eateries, making it an attractive location for both Indian and international brands. As a result, it consistently remains in high demand, even amidst global economic shifts and geopolitical tensions.
The Rise of Khan Market in Asia-Pacific
In the Asia-Pacific retail landscape, Khan Market has shown impressive growth. It moved up from the 24th to the 23rd position in the region’s most expensive high streets, surpassing well-known global retail destinations like Bangkok’s Central Retail District, Jakarta’s Prime Main Street, and Bonifacio in Manila. This achievement underscores the growing importance of India’s retail sector and its rising prominence on the global stage.
India's retail landscape, particularly in Delhi and its National Capital Region (NCR), has become increasingly competitive, with limited space availability and strong demand pushing rental prices higher. Delhi’s other top retail streets, such as Connaught Place and Galleria Market in Gurgaon, have also seen substantial increases in rental values, further reinforcing India’s position as an emerging hub for premium retail locations.
India’s Top Three High Streets
Khan Market isn’t the only high street in Delhi-NCR gaining prominence. The region is home to India’s top three most expensive high streets:
- Khan Market, Delhi: ₹19,000+ per sq ft annually.
- Connaught Place, Delhi: ₹13,335 per sq ft annually.
- Galleria Market, Gurgaon: ₹13,166 per sq ft annually.
These areas are in high demand due to their prime location, with Connaught Place being a key commercial and cultural hub in Delhi. Galleria Market, on the other hand, caters to a more affluent audience with its wide array of luxury retailers and restaurants. The limited availability of retail space in these locations has created intense competition, driving up rental prices.
This increasing competition is not confined to the retail space alone; even the surrounding areas are witnessing rising property values as more international brands seek a presence in India’s top retail locations. The high demand and lack of available spaces in these iconic areas have made them some of the most sought-after locations for retailers looking to expand or establish their brand in India.
Indian Retail Market: Growth and Leasing Trends
The growth in India’s retail market is not just confined to its most expensive streets. Across the country, retail leasing activity has been on the rise, with main streets recording a significant increase in demand. In 2024, main streets in India recorded leasing of 3.8 million square feet, marking an 11% increase year-on-year. This uptick in leasing activity comes amid a broader trend of strong retail performance in key markets such as Bengaluru, Mumbai, and Kolkata.
While locations like Khan Market have experienced sustained demand, other locations have also seen significant rental growth. For instance, Bengaluru’s 100 Feet Road led the region’s rental growth with a 32% year-on-year increase. Other cities such as Pune, Mumbai, and Kolkata have also seen notable growth, reflecting a positive outlook for India’s retail sector as a whole.
Indian High Streets: Growth Trend
India’s retail sector has experienced steady growth, with high-street rentals rising in several cities.
- Indiranagar 100 Feet Road, Bengaluru: 32% year-on-year growth.
- MG Road, Pune: Achieved more than 10% annual rent growth.
- Fort/Fountain, Mumbai: Consistent rental increases.
- Park Street, Kolkata: Positive growth trends.
While these locations show robust rental growth, Chennai’s Anna Nagar and Pondy Bazaar remain more affordable, with rentals around $25-26 per square foot annually.
Supply Constraints and Competitive Tension
The limited supply of high-quality retail spaces in India’s top cities is a significant factor contributing to rising rental prices. With malls facing supply constraints and competition intensifying, main streets like Khan Market, Connaught Place, and Galleria Market are increasingly seen as the most lucrative locations for brands seeking visibility and footfall. The competition for prime retail space has created a dynamic where only the most well-established and affluent brands can afford to lease spaces in these coveted areas.
Global Context: Top Retail Destinations
Globally, the most expensive main streets are dominated by iconic retail destinations in cities such as Milan, New York, and London. For the first time, a European street, Via Montenapoleone in Milan, has taken the top spot in Cushman & Wakefield’s global rankings, with an annual rent of $2,047 per square foot. This beats New York's Upper 5th Avenue, which ranks second at $2,000 per square foot.
Key global retail hotspots include:
- Via Montenapoleone, Milan: $2,047 per sq ft.
- Upper 5th Avenue, New York: $2,000 per sq ft.
- New Bond Street, London: $1,762 per sq ft.
- Tsim Sha Tsui, Hong Kong: $1,607 per sq ft.
- Avenue des Champs Élysées, Paris: $1,282 per sq ft.
- Ginza, Tokyo: $1,186 per sq ft.
While Khan Market is far from reaching these levels, its status as one of the most expensive high streets in Asia-Pacific highlights the growing economic strength of India’s retail sector. The global demand for premium physical retail spaces remains strong, and Khan Market’s consistent ranking in the global index reinforces the enduring importance of main streets as key retail destinations.
Global Market Dynamics
Globally, super-prime retail locations continue to play a central role in retail strategies. The report noted a 4.4% average increase in rents across 138 locations worldwide.
Regional Rental Growth
- America: 8.5%, led by an 11% rise in the U.S.
- Europe: 3.5%, driven by demand in luxury retail locations.
- Asia-Pacific: 3.1%, showcasing stable economic trends.
The global average rent is now nearly 6% higher than pre-pandemic levels, indicating strong recovery and demand for physical retail spaces.
The Future of Retail in India
The retail landscape in India is poised for sustained success. The country’s strong economic growth and evolving consumer preferences are expected to continue driving demand for high-end retail locations. As retail destinations like Khan Market attract more international brands, the pressure on available space will likely intensify, leading to further rental growth.
Retailers will need to adapt to changing consumer behaviors, with an increasing focus on personalized shopping experiences, digital integration, and sustainability. However, the demand for prime locations like Khan Market will remain central to many retailers’ strategies as they look to establish their presence in India’s fast-growing retail sector.
