Skyrocketing Rents: Delhi's Retail Space Boom

Khan Market in Delhi experienced an 8% rent hike in 2025 amid robust demand and limited supply. High-street locations across Delhi-NCR saw rental growth ranging from 2-14% as retailers, especially in the F&B and fashion sectors, expand in pursuit of high-footfall areas, despite new mall openings.

Delhi's prestigious Khan Market, dubbed India's most expensive retail location, saw an 8% increase in rents last year amid a surge in demand and limited availability, real estate consultant Cushman & Wakefield reported. This reflects a broader rental rise across Delhi-NCR's high-street locations, ranging from 2% to 14% growth.

Despite new malls completing in the December quarter, retail spaces across Delhi continued to witness rising rentals, especially among high-traffic areas that attract affluent consumer segments. Executive Managing Director of Cushman & Wakefield, Gautam Saraf, highlighted the growing interest from food and beverage (F&B) and fashion retailers seeking greater brand visibility.

With established markets like Khan Market and Gurugram's Galleria Market benefitting from a strong consumer base and limited space, rents are poised to rise further. Analysts suggest this uptrend is fueled by both domestic and international brands seeking prime locations amidst a scarcity of new retail developments.