Delhi’s Khan Market Ranked 22nd Most Expensive High Street in the World

Delhi's poshest Khan Market has retained the 22nd rank in a global list of most expensive high-street retail locations with an annual rent of $229 (over Rs 19,000) per sq ft, according to Cushman & Wakefield.

Via Monte Napoleone in Milan, Italy has emerged to be the world's most expensive main street with an annual rental of $2,047 per sq ft, ousting New York's Upper 5th Avenue (49th to 60th Sts) which commands a rental of $2,000 per sq ft a year.

Global real estate consultant Cushman & Wakefield on Thursday released the 34th edition of its flagship retail report 'Main Streets Across The World 2024' that focuses on headline rents in 138 best-in-class urban retail locations across the globe.

The global index ranks the most expensive destination in each market.

With rents at $229 per square foot annually (around Rs 19,330), Khan Market remains on the prestigious global list and continues to be India's most expensive high street, the consultant said. The Khan Market registered a 7 per cent year-on-year rental growth.

Milan's Via Monte Napoleone, where rents have risen by nearly a third in the past two years, has shot to the top of the league table to become the world's most expensive retail destination above New York's Upper 5th Avenue. It is the first time a European street has topped the global rankings, the consultant said.

Commenting on the report, 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 carefully edited mix of high-end brands and luxury boutiques, Khan Market remains a top destination for affluent shoppers, cementing the area's place as a flagship luxury retail destination. The supply of retail space in the district is also highly limited, generating keen competition, hence pushing rental values up, he added.

Hence, while shopping malls face constraints in the supply side, India's major streets have actually done well on demand, with strong rental growth, said Shatdal.

In India, so far this calendar year, main streets have recorded a leasing of 3.8 million square feet of retail space, marking an 11 per cent year-on-year growth.

"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," Shatdal said.

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 lyses, 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).

According to the report, this year, the Indian economy has been the strongest major economy in the world, and that trend is reflected in its robust rental growth performance.

"This year, Indiranagar 100 Feet Road in Bengaluru leads the region, reporting rental growth of 32 per cent YoY," it said.

"While 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 percent. Rent growth across the 16 locations tracked across India averaged a 9 percent increase YoY, Cushman & Wakefield said."