Retail rents in Delhi’s upscale Khan Market rose about 8% in 2025 as strong demand from brands and limited supply of quality high-street space pushed up leasing costs across the national capital region, according to property consultant Cushman & Wakefield.
Monthly rentals in Khan Market stood at Rs 1,700–1,800 per sq ft during the October–December quarter of 2025. As per PTI, this makes it the most expensive high-street retail location in India. Cushman & Wakefield data showed that rents across major high-street locations in Delhi-NCR rose between 2% and 14% year-on-year last calendar year.
Galleria sees highest rental growth
Among other markets, Gurugram’s Galleria Market recorded the sharpest increase, with rents rising 14% to Rs 1,150–1,250 per sq ft a month. In Connaught Place’s Inner Circle, rents increased 4% to Rs 1,150–1,250 per sq ft. Monthly rentals in South Extension rose 3% to Rs 800–850 per sq ft. Kamla Nagar recorded an 11% increase to Rs 480–510 per sq ft, while Greater Kailash-I’s M Block saw rents climb 5% to Rs 475–500 per sq ft a month, as per PTI.
Other markets also posted steady gains. Karol Bagh recorded rents of Rs 395–415 per sq ft, while Lajpat Nagar saw a 3% increase to Rs 290–310 per sq ft. Rajouri Garden posted a 6% rise to Rs 255–265 per sq ft, while Punjabi Bagh saw a 2% increase to Rs 260–275 per sq ft.
In NCR markets, Noida’s Sector 18 recorded an 8% increase in rents to Rs 200–220 per sq ft, while Gurugram’s Sector 29 saw rents rise 3% to Rs 180–190 per sq ft during the October–December period. Cushman & Wakefield said the asking rents are based on the carpet area of ground-floor vanilla stores, PTI reported.
Retail demand driving rental rise
“High streets across Delhi-NCR recorded firm rental appreciation in 2025, with year-on-year growth ranging between 2% and 14%, reflecting demand that continues to outpace the availability of quality space,” Gautam Saraf, executive managing director, Mumbai and new business at Cushman & Wakefield, said, as per PTI.
Retailers across categories, particularly food and beverages and fashion, are expanding their presence, he said, adding that brands are increasingly favouring high-visibility corridors with steady footfall, PTI added. Saraf said rentals across key high-street locations continued to rise despite the completion of a few malls in the December quarter.
“Khan Market remains the country’s most expensive high street and recorded around 8% year-on-year rental appreciation in 2025,” he said, adding that the location continues to attract premium and luxury brands due to strong demand and extremely tight vacancy levels.
Leasing activity picks up
Shriram PM Monga, co-founder and principal consultant at SRED Real Estate Advisory, said established markets such as Khan Market and Galleria benefit from limited supply and affluent catchment areas with strong spending power, as per PTI. According to Cushman & Wakefield, retail leasing in Delhi-NCR reached 2.25 million sq ft in 2025, the highest since 2019, registering an 83% increase compared with the previous year.
High streets accounted for 55% of the annual leasing, while malls made up the remaining 45%, PTI reported.