Delhi's Khan Market Sees 8% Rental Growth for Retail Spaces in 2025

Delhi’s upscale Khan Market witnessed an 8% increase in rent for retail spaces last year, driven by better demand and tight supply, according to data from Cushman & Wakefield. The real estate consultant’s data shows that the monthly rent of major high street locations across Delhi-NCR rose in a range of 2-14% last calendar year.

The monthly rent in Khan Market stood at Rs 1,700-1,800 per sq ft during the October-December period of 2025, marking an 8% year-on-year increase. Khan Market is the most expensive high-street location in India.

In Connaught Place (Inner Circle), the monthly rent increased by 4% to Rs 1,150 – 1,250 per square foot. Main street rentals in Galleria Market (Gurugram) recorded the highest growth at 14%, reaching Rs 1,150-1,250 per square foot a month. Monthly rentals in South Extension grew by 3% to Rs 800–850 per sq ft.

Rents at Kamla Nagar in Delhi increased by 11% to Rs 480–510 per square foot a month. Delhi’s Greater Kailash-I, M Block, witnessed a 5% increase to Rs 475–500 per square foot per month. In Karol Bagh, Delhi, the monthly rent rose to Rs 395–415 per square foot. Rent in Delhi’s Lajpat Nagar stood at Rs 290 – 310 per square foot a month, up 3% annually.

Rajouri Garden saw a 6% increase in monthly rent to Rs 255–265 per square foot. A 2% increase in rent was recorded in Punjabi Bagh, Delhi, to Rs 260–275 per square foot a month. Noida’s Sector 18 posted monthly rental growth of 8% to Rs 200-220 per sq ft. In Gurugram Sector 29, the monthly rent rose 3% annually to Rs 180–190 per square foot during the October-December period of last year.

Cushman & Wakefield noted that the asking rent is based on the carpet area of ground floor vanilla stores. Gautam Saraf, Executive Managing Director, Mumbai and New Business, Cushman & Wakefield, said, “High streets across Delhi NCR recorded firm rental appreciation in 2025, with year-on-year growth ranging between 2–14 per cent, reflecting demand that continues to outpace the availability of quality space.”

Retailers across all product categories, particularly food and beverages (F&B) and fashion, are expanding their presence. Saraf noted that there is a growing preference among retailers for visibility-driven, high-consumption corridors with consistent footfall. He mentioned that the rentals across key high-street locations continued to rise despite the completion of a few malls in the December quarter.

On Khan Market, Saraf said it remains the country’s most expensive high street and recorded around 8% year-on-year rental appreciation in 2025. “Characterised by consistently strong demand and extremely tight vacancy, the Khan market continues to attract premium and luxury brands seeking sustained visibility, brand positioning, and deeper engagement with affluent consumer segments,” Saraf said.

Shriram PM Monga, Co-founder & Principal Consultant at SRED Real Estate Advisory, said these established markets offer high visibility, steady footfall, and a relevant brand mix that attracts habitual consumers. “Markets like Galleria and Khan Market benefit from limited supply and established catchment areas with high spending power,” he said.

With very few new retail developments coming up at prime locations, Monga said the demand from both domestic and global brands is pushing rentals upward. “The strong comeback and expansion of F&B brands, including restaurants and cafés, along with lifestyle brands, is also accelerating rental growth, as these categories drive consistent footfall and enhance the overall appeal of high streets,” he mentioned.

According to Cushman & Wakefield, the leasing of retail spaces in Delhi-NCR during 2025 stood at 2.25 million square feet – the highest since 2019 – registering 83% growth as compared to the preceding year. Mainstreets accounted for 55% of annual leasing, while malls witnessed 45% of total space take-up.