Khan Market Retains Global Prestige as a Prime Retail Destination

Khan Market in Delhi has reaffirmed its position as a leading retail hub, ranking as the 22nd most expensive retail street globally, with an annual rent surpassing ₹19,000 per square foot. According to the Cushman & Wakefield report titled Main Streets Across the World, the iconic market remains India’s costliest retail location, boasting a year-on-year rental growth of 7%.

With annual rents at $229 per square foot (approximately ₹19,330), Khan Market continues to hold its prestigious spot among the world’s high-end retail destinations. It has also climbed from 24th to 23rd place among the Asia-Pacific region’s most expensive high streets, overtaking locations such as Bangkok’s Central Retail District, Jakarta’s Prime Main Street, and Bonifacio in Manila.

Delhi-NCR is now home to India’s top three most expensive high streets. Apart from Khan Market, Connaught Place in Delhi and Galleria Market in Gurgaon have secured significant positions in the Asia-Pacific rankings. Their annual rents stand at $158 (₹13,335) and $156 (₹13,166) per square foot, respectively. The report highlights that limited retail space in these areas has intensified competition, driving up rental prices as brands ie for prime locations.

The Main Streets Across the World report, now in its 34th edition, evaluates headline rents across 138 premier urban retail destinations globally, many of which cater to the luxury market. Cushman & Wakefield’s proprietary data has enabled the creation of a global index ranking the most expensive retail streets worldwide.

This year, Via Montenapoleone in Milan, Italy, emerged as the most expensive retail street globally, commanding an annual rent of $2,047 per square foot. It edged out New York’s Upper 5th Avenue (49th to 60th Streets), which now ranks second with rents at $2,000 per square foot annually. This marks the first time a European location has topped the rankings in the firm’s flagship report.

Commenting on Khan Market’s ranking and its implications for the Indian retail landscape, Saurabh Shatdal, Managing Director of Capital Markets and Head of Retail in India at Cushman & Wakefield, remarked, “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.”

He added, “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 million square feet, marking an 11% year-on-year growth.”

Shatdal further emphasized the broader global retail trends, stating, “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.”

Global Retail Hotspots

Following Via Montenapoleone and New York’s Upper 5th Avenue, London’s New Bond Street ranks third, with annual rents of $1,762 per square foot. Other notable entries in the global top ten include Tsim Sha Tsui in Hong Kong ($1,607), Avenue des Champs Élysées in Paris ($1,282), Ginza in Tokyo ($1,186), Bahnhofstrasse in Zurich ($981), Pitt Street Mall in Sydney ($802), Myeongdong in Seoul ($688), and Kohlmarkt in Vienna ($553).

India’s Rental Growth Leaders

In India, Bengaluru’s 100 Feet Road in Indiranagar has emerged as a leader in rental growth, recording a 32% year-on-year increase. This significant growth underscores the city’s dynamic retail environment. Across the 16 Indian locations tracked in the report, rental growth averaged 9% year-on-year. Other locations, such as Pune’s MG Road, Fort/Fountain in Mumbai, and Park Street in Kolkata, also reported notable rental increases of over 10%.

Despite the impressive growth, some high streets in Chennai, such as Anna Nagar and Pondy Bazaar, remain among the region’s most affordable, with annual rents of $25-26 per square foot.

Cushman & Wakefield noted that competitive tension for limited retail spaces contributed to rental growth in 57% of the 138 locations tracked globally. Meanwhile, 14% of locations saw declines, and 29% remained flat. This resulted in an average global rental increase of 4.4%.

Regionally, the Americas emerged as the strongest performer with an 8.5% increase in rents, driven primarily by an 11% surge in the United States—double the 5.2% growth recorded last year. Europe and Asia-Pacific followed with growth rates of 3.5% and 3.1%, respectively. On average, rents across all 138 locations are now nearly 6% above pre-pandemic levels, underscoring the resilience of the global retail market.

As India’s retail sector continues to evolve, Khan Market’s enduring appeal and the country’s consistent rental growth reflect the increasing demand for premium retail spaces in a rapidly growing economy.