Retail Rents in Delhi’s Khan Market Surge 9% Year-On-Year for April to June, Reports C&W
The latest data from Cushman & Wakefield indicates a significant upward trend in retail rental prices across Delhi-NCR, particularly within the upscale Khan Market, which recorded a notable 9% year-on-year increase, raising monthly rents to between Rs 1,700-1,800 per square foot during the April-June 2026 quarter. This surge is attributed to heightened demand paired with supply constraints, a dynamic that is also reflected across other key retail locations in the region. In contrast, Kamla Nagar remained stagnant, but other prime locations such as South Extension I & II reported the sharpest growth at 10%, and additional areas like Connaught Place and Galleria Market experienced increases of 2% and 4%, respectively.
The report details rental rates for various Mumbai locales, with the Connaught Place Inner Circle seeing an uptick to Rs 1,250-1,300 per square foot. Notably, South Extension’s increase in rental prices positions it as a competitive area, suggesting a robust recovery in the retail sector. Other areas such as Greater Kailash-I and Karol Bagh recorded moderate growth rates of 2%, while Punjabi Bagh and Rajouri Garden saw increases of 4% and 2%, respectively. This overall rental escalation underscores a consistent demand for high-street and mall retail spaces throughout the Delhi-NCR region, reflecting evolving consumer preferences post-pandemic.
Furthermore, the leasing activity in retail spaces has surged dramatically, with total take-up more than doubling to 0.67 million square feet in the April-June period, compared to 0.30 million square feet in the previous year. Malls captured 63% of this leasing volume, suggesting a strong preference for shopping experiences that are anchored in larger retail environments. Over the entirety of 2025, leasing across Delhi-NCR amounted to 2.25 million square feet, marking the highest level since 2019 and underscoring an 83% increase over the preceding year. Such robust performance is indicative of a consolidating retail revival and growing consumer confidence, setting a positive trajectory for investors in the sector.
As businesses and consumers adapt to post-pandemic realities, the continued increase in retail rents and leasing activity emphasizes not only the resilience of the retail sector but also the strategic opportunities it presents for investment. Investors should consider the implications of these rental trends, particularly in high-demand areas, while monitoring the evolving geographical distribution of retail interests between high-street properties and shopping malls.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)