New Delhi's Khan Market Ranked 22nd Most Expensive Retail Market Globally

When you think about the most expensive cities in India, what instantly comes to mind? Mumbai? Bangalore? Well, this may be true, but none of these cities comprise the most expensive retail market. It can be found in the national capital. As per a report released by Cushman & Wakefield, a real estate consultancy firm, New Delhi's Khan Market has emerged as the most expensive retail market in the country.

Globally, the market is the 22nd most expensive retail market, with 3 percent year-on-year (YoY) growth in its rentals. It has an annual rent of $217 per square foot.

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As per this report, over 16 Indian street markets have emerged on this list out of the 51 most expensive main street markets in the APAC region. According to this report, Fifth Avenue in New York City retains its top ranking as the world¡¯s most expensive retail destination, despite recording flat rental growth. YOY and Milan¡¯s Via Montenapoleone jumped to the second spot, displacing Hong Kong¡¯s Tsim Sha Tsui, which has now come down to the third spot.

¡°Pre-pandemic to present growth in rentals at Khan Market was recorded at 7 percent, while the YOY growth in rentals at the high street market was 3 percent. This got Khan Market the 22nd spot on the global Main Street list. At present, Khan Market commands a rent of $217 per square foot per year (around Rs 1506 per sq ft per month),¡± the report mentioned.

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Other than that, the biggest jump has been made by Istiklal Street in Istanbul, where it reached the 20th spot from the 31st spot. This has occurred mainly due to inflation, which has doubled the rents.

Saurabh Shatdal, Managing Director, Capital Markets, Cushman & Wakefield India, said, ¡°Indian main streets, especially the prominent ones, have benefited from a dearth of space across quality-grade retail malls. Main street rentals have grown by 10% year over year.¡±

"One of the main reasons behind this is that while demand for retail space has been recovering strongly post-pandemic, supply of grade A-quality malls hasn¡¯t kept pace," Shatdal added.

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For all the Delhites who may think that Khan Market is much more expensive than it used to be, it probably is.