by THO
Delhi’s Khan Market has once again retained its status as a global retail hotspot, ranking as the 22nd most expensive main street internationally with an annual rent of over ₹19,000 per sq ft, according to Cushman & Wakefield’s Main Streets Across the World report.
With rents at $229 per square foot annually (sf/annum) (around ₹19,330), Khan Market retains its position on the prestigious global list and continues to be India’s most expensive high street, registering a 7% year-on-year rental growth, the report noted.
In the Asia-Pacific retail landscape, Delhi’s Khan Market climbed from 24th to 23rd position among the region’s most expensive high streets, surpassing notable locations like Bangkok’s Central Retail District, Jakarta’s Prime Main Street, and Bonifacio in Manila.
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 ( ₹13,335) and $156 ( ₹13,166) per square foot annually, respectively. Limited space addition has made these areas highly competitive and consequently more costly for brands seeking prime retail locations, the report said.
Now, in its 34th edition, the report focuses on headline rents in 138 best-in-class urban retail locations across the globe, many of which are linked to the luxury sector, utilising Cushman & Wakefield’s proprietary data. The global index ranks the most expensive destination in each market.
Via Montenapoleone in Milan, Italy, has become the most expensive main street globally with an annual rent of $2,047 per sq ft, beating New York’s Upper 5th Avenue (49th to 60th Sts) which commands a rental of $2,000 per sq ft a year.
It is the first time a European street has topped the global rankings in the firm’s flagship retail report.
Commenting on Khan Market’s rankings and the growth of Indian retail sector, Saurabh Shatdal, Managing Director, Capital Markets and Head-Retail-India, Cushman & Wakefield, said, “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.”
“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% year-on-year growth,” he said.
“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,” he said.
Global retail hotspots
New Bond Street, London, is at the third position with annual rent of $1,762 per sq ft, followed by Tsim Sha Tsui (main street shops), Hong Kong ($1,607 a sq ft); Avenue des Champs Élysées, Paris ($1,282 a sq ft); Ginza, Tokyo ($1,186 per sq ft); Bahnhofstrasse, Zurich ($981 per sq ft); Pitt Street Mall, Sydney ($802 per sq ft); Myeongdong, Seoul ($688 per sq ft); and Kohlmarkt, Vienna ($553 per sq ft annually).
Bengaluru’s 100 Feet Road leads the region’s rental growth at 32% YOY
Rents closely reflected wider macroeconomic performance within the region. India has been the strongest major economy in the world this year, and Indiranagar 100 Feet Road in Bengaluru leads the region’s rental growth at 32% YOY. Rental growth across 16 tracked Indian locations averaged a 9% increase YOY, with notable growth recorded in locations like Pune’s MG Road, Fort/Fountain in Mumbai, and Park Street in Kolkata.
Conversely, Chennai’s Anna Nagar and Pondy Bazaar remain some of the region’s most affordable high streets, with rentals between $25-26 per square foot annually.
“Whilst reporting relatively more modest uplifts, MG Road in Pune, Anna Nagar in Chennai, Fort/Fountain in Mumbai and Park Street in Kolkata all recorded annual rent growth in excess of 10 per cent. Rent growth across the 16 locations tracked across India averaged a 9 per cent increase YoY,” Cushman & Wakefield said.
Competitive tension for limited space saw YOY rental growth recorded in 57% (79) of the 138 locations tracked, declines in just 14% (19), with the remainder 29% (40) flat. This resulted in a global average rental increase of 4.4%.
Americas was the strongest performer regionally at 8.5%, driven by rental growth of almost 11% in the U.S. – more than double the 5.2% recorded last year – followed by Europe and Asia Pacific at 3.5% and 3.1% respectively. Rents across the 138 locations are now on average nearly 6% above pre-pandemic levels, the report noted.
