Khan Market Remains India’s Priciest Retail Spot Despite Global Drop

Delhi’s Khan Market has slipped one position in the global rankings of expensive retail streets, now standing at 24th place, according to the latest report from Cushman & Wakefield. Despite this decline, it retains its title as India’s most expensive high-street retail location. Rents in Khan Market have seen a year-on-year increase of 3%, reaching approximately ₹22,000 per square foot annually (around $223 per square foot).

Experts indicate that rental transactions within Khan Market can vary significantly based on location and store frontage. Prime locations within the market can command rents exceeding ₹2,200 per square foot per month. This variability underscores the competitive nature of retail space in high-demand areas.

Global Retail Rankings and Trends

The report highlights that London’s New Bond Street has secured the title of the world’s most expensive retail destination for the first time, with rents soaring by 22% over the past year to $2,231 per square foot annually. This marks a significant leap over Milan’s Via Montenapoleone and New York’s Upper Fifth Avenue, which now rank second and third, respectively.

Cushman & Wakefield’s 35th edition of its report, titled Main Streets Across the World, reveals that overall, 58% of the tracked retail streets experienced rent increases. This surge in rental prices reflects a demand for retail space that far exceeds supply across many urban markets.

In contrast, rental growth in the Asia Pacific region has slowed, dropping from 2.8% in 2024 to 2.1% in 2025. Yet, India’s Tier 1 cities are driving rental growth in the region, with Gurugram’s Galleria Market seeing a remarkable 25% increase in rents, and Connaught Place witnessing a 14% rise in rental prices.

India’s Growing Retail Landscape

The robust growth of retail rents in India is attributed to a limited supply of commercial space combined with strong demand, demonstrating the ongoing appeal of premium retail locations in major urban areas. The average rental growth across 16 tracked locations in India has been reported at 6% year-on-year.

Gautam Saraf, Executive Managing Director of Cushman & Wakefield, noted, “India’s high streets are demonstrating exceptional resilience and growing global prominence. Premium destinations like Khan Market, Connaught Place, and Galleria Market are attracting both international and domestic brands, driven by rising affluence and evolving consumer preferences.” He emphasized that with limited mall supply, high streets have become essential for retailers aiming for visibility and customer engagement.

Overall, India’s retail sector has outperformed global averages, reporting a year-on-year rental growth of 6%. Comparatively, global rental growth averaged 4.2%, with the Americas leading at 7.9% due to currency fluctuations in South America. Europe maintained steady growth at 4%, while Asia Pacific faced challenges, particularly in Greater China and Southeast Asia.

The ongoing transformation of India’s retail environment, characterized by premiumisation and experiential retail, positions it as a dynamic market within the Asia Pacific region. Retail experts continue to monitor these trends closely, noting that confidence is returning in markets such as Singapore and Sydney, where rents are gradually increasing.

As the retail landscape evolves, the significance of high streets as strategic commercial hubs remains clear, with India standing out in the global market.