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

Delhi's upscale Khan Market saw an 8% increase in rent for retail spaces last year, according to data from real estate consultant Cushman & Wakefield. The rise is attributed to better demand and tight supply. 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 known as the most expensive high-street location in India. In Connaught Place (Inner Circle), the monthly rent rose by 4% to Rs 1,150 - 1,250 per square foot. The main street rentals in Galleria Market (Gurugram) recorded the highest growth of 14%, with rents ranging from Rs 1,150-1,250 per square foot per 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 per month. Delhi's Greater Kailash-I, M Block, witnessed a 5% increase to Rs 475-500 per square foot per month. In Karol Bagh, the monthly rent rose to Rs 395-415 per square foot. Lajpat Nagar saw a 3% annual increase in rent, with rates at Rs 290 - 310 per square foot per month. Rajouri Garden experienced a 6% increase in monthly rent to Rs 255-265 per square foot. Punjabi Bagh recorded a 2% increase in rent to Rs 260-275 per square foot per month.

Noida's Sector 18 posted a monthly rental growth of 8% to Rs 200-220 per sq ft. In Gurugram Sector 29, the monthly rent rose by 3% annually to Rs 180-190 per square foot during the October-December period of 2025. The asking rent is based on the carpet area of ground floor vanilla stores.

Gautam Saraf, Executive Managing Director, Mumbai and New Business at Cushman & Wakefield, highlighted that high streets across Delhi NCR recorded firm rental appreciation in 2025, with year-on-year growth ranging between 2-14%. This reflects a 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.

Despite the completion of a few malls in the December quarter, rentals across key high-street locations continued to rise. On Khan Market, Saraf stated that it remains the country's most expensive high street and recorded around 8% year-on-year rental appreciation in 2025. Characterized by consistently strong demand and extremely tight vacancy, Khan Market continues to attract premium and luxury brands seeking sustained visibility, brand positioning, and deeper engagement with affluent consumer segments.

Shriram PM Monga, Co-founder & Principal Consultant at SRED Real Estate Advisory, emphasized that 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. With very few new retail developments coming up at prime locations, the demand from both domestic and global brands is pushing rentals upward. The strong comeback and expansion of F&B brands, including restaurants and cafes, along with lifestyle brands, are also accelerating rental growth, as these categories drive consistent footfall and enhance the overall appeal of high streets.

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 compared to the preceding year. Main streets accounted for 55% of annual leasing, while malls witnessed 45% of total space take-up.