Demand from fashion and F&B brands pushes up high-street rentals across Delhi-NCR, with Galleria Market recording the sharpest rise
Retail rents at Delhi’s upscale shopping hub Khan Market increased about 8 per cent in 2025, supported by strong retailer demand and limited availability of premium space, according to property consultant Cushman & Wakefield.
Data released by the consultancy showed monthly rents across key high-street retail locations in the Delhi-NCR region rose between 2 per cent and 14 per cent last calendar year as brands continued to expand their physical presence.
Rents in Khan Market stood at around Rs 1,700–1,800 per sq ft per month during the October–December quarter of 2025, reinforcing its position as the country’s most expensive high-street retail destination.
Galleria Market Records Sharpest Rental Growth
Among major high-street locations, Galleria Market registered the highest increase, with rents rising 14 per cent to Rs 1,150–1,250 per sq ft per month.
At Connaught Place (Inner Circle), rentals climbed 4 per cent to about Rs 1,150–1,250 per sq ft. Rents in South Extension also edged up 3 per cent to Rs 800–850 per sq ft.
Other established retail corridors recorded steady growth as well. Rentals at Kamla Nagar Market rose 11 per cent to Rs 480–510 per sq ft, while Greater Kailash I M Block Market saw a 5 per cent increase to around Rs 475–500 per sq ft.
In Karol Bagh Market, rents stood at Rs 395–415 per sq ft per month, while Lajpat Nagar Market recorded a 3 per cent annual rise to Rs 290–310 per sq ft.
Meanwhile, Rajouri Garden Market saw rentals increase 6 per cent to Rs 255–265 per sq ft, while Punjabi Bagh Market posted a modest 2 per cent rise to Rs 260–275 per sq ft.
Outside Delhi, Sector 18 Market reported an 8 per cent rise in rents to Rs 200–220 per sq ft. In Sector 29 Market, rentals increased 3 per cent to about Rs 180–190 per sq ft during the December quarter.
Cushman & Wakefield said the quoted rents are based on the carpet area of ground-floor vanilla retail stores.
Retail Demand Outpacing Supply
Gautam Saraf, Executive Managing Director, Mumbai and New Business at Cushman & Wakefield, said rental growth reflects demand that continues to exceed the supply of quality high-street retail spaces.
“High streets across Delhi NCR recorded firm rental appreciation in 2025, with year-on-year growth ranging between 2–14 per cent, reflecting demand that continues to outpace the availability of quality space.”
“Retailers across all product categories, particularly food and beverages (F&B) and fashion, are expanding their presence,” he said.
Saraf added that retailers are increasingly favouring high-visibility commercial corridors with steady footfall.He noted that rentals in prime locations continued to rise despite the completion of a few new malls during the December quarter.
On Khan Market, Saraf said the area remains India’s costliest high-street retail destination.“Characterised by consistently strong demand and extremely tight vacancy, the Khan market continues to attract premium and luxury brands seeking sustained visibility, brand positioning and deeper engagement with affluent consumer segments,” he said.
Retail Leasing Rebounds In 2025
Shriram PM Monga, Co-founder and Principal Consultant at SRED Real Estate Advisory, said established retail districts continue to attract brands because of their strong consumer base and visibility.
“These established markets offer high visibility, steady footfall, and a relevant brand mix that attracts habitual consumers.”
He added that markets such as Galleria Market and Khan Market benefit from limited supply and affluent catchment areas with high spending power.
With few new retail developments emerging in prime locations, demand from both domestic and international brands is pushing rentals upward, Monga said.
“The strong comeback and expansion of F&B brands, including restaurants and cafés, along with lifestyle brands, is also accelerating rental growth, as these categories drive consistent footfall and enhance the overall appeal of high streets.”
According to Cushman & Wakefield, retail leasing in Delhi-NCR reached about 2.25 million sq ft in 2025 — the highest level since 2019 — marking an 83 per cent increase compared with the previous year.
High-street locations accounted for around 55 per cent of total leasing activity, while shopping malls made up the remaining 45 per cent.
