Khan Market Sees 8% Rise in Retail Rents Amid Strong Demand

According to a recent report by real estate consultant Cushman & Wakefield, retail rents in Khan Market, a prominent upscale retail hub in Delhi, saw an 8% increase year-on-year in 2025. This significant rise underscores the robust demand for premium high-street retail spaces in the Delhi-NCR region.

The report highlights that Khan Market, known for its luxury brands and high-end local businesses, continues to attract both domestic and international retailers. The market's strategic location, coupled with its affluent clientele, makes it a preferred destination for brands looking to establish a strong presence in the Indian market.

Cushman & Wakefield's data indicates that the rental growth in Khan Market is part of a broader trend of increasing demand for premium retail spaces in major cities across India. The rise in rents is attributed to several factors, including the recovery of the retail sector post-pandemic, the growing middle class, and the increasing preference for experiential shopping.

The ongoing development of infrastructure and the government's initiatives to boost the retail sector have also played a crucial role in driving demand. Khan Market's reputation as a hub for luxury and high-end brands has further solidified its position as a sought-after retail location.

Despite the challenges posed by the global economic environment, Khan Market has managed to maintain its appeal to retailers. The market's ability to attract a diverse range of tenants, from luxury fashion brands to gourmet food outlets, has contributed to its sustained growth.

However, the rise in rents also poses challenges for smaller and independent retailers. Many local businesses are finding it increasingly difficult to compete with the high rental costs, which can put a strain on their operations. This has led to a debate about the need for more affordable retail spaces to support local entrepreneurship and maintain the market's diverse offerings.

To address these concerns, some stakeholders are calling for the introduction of policies that encourage mixed-use developments and the creation of more affordable retail spaces. This could help to balance the interests of both established brands and smaller, local businesses.

In conclusion, the 8% increase in retail rents in Khan Market reflects the strong demand for premium retail spaces in Delhi-NCR. While this growth is a positive indicator for the retail sector, it also highlights the need for a balanced approach to ensure that the market remains accessible to a wide range of businesses.

Cushman & Wakefield's report serves as a valuable resource for retailers, investors, and policymakers, providing insights into the current trends and future outlook for the retail sector in Khan Market and the broader Delhi-NCR region.