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Delhi's Khan Market has been ranked as 22nd most expensive main street globally, retaining its position and continuing to be India's most expensive high street, registering a 7 per cent (year-on-year) rental growth, according to a report on Thursday.
According to a Cushman & Wakefield report, which focuses on rents in 138 urban and luxury retail locations across the globe, Khan Market has rents at $229 per square foot annually (about Rs 19,330).
Interestingly, 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 rentals of $158 (Rs 13,335) and $156 (Rs 13,166) per square foot annually.
Bengaluru's Indiranagar saw strongest rental growth market in the Asia-Pacific region, while Anna Nagar in Chennai as the most affordable in the region, the report mentioned.
“Khan Market's position among the world's top retail destinations underscores 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, pushing 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 msf, marking a 11 per cent year-on-year growth,” Mr 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 be crowned 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,” Mr Shatdal added.
Competitive tension for limited space saw rental growth recorded in 57 per cent (79) of the 138 locations tracked, declines in just 14 per cent (19), with the remainder 29 per cent (40) flat.
This resulted in a global average rental increase of 4.4 per cent. Americas was the strongest performer regionally at 8.5 per cent, driven by rental growth of almost 11 per cent in the U.S. – more than double the 5.2 per cent recorded last year.