In the bustling heart of New Delhi, the retail rental landscape is experiencing a significant transformation, reflecting a growing demand among retailers. Connaught Place, a prime shopping destination, has seen a remarkable 14% increase in rental rates for retail spaces during the first quarter of 2025. Meanwhile, the upscale Khan Market has also reported a solid 7% growth, showcasing the ongoing appeal of high-street locations.

Rising Rentals in Connaught Place

As one of the most sought-after retail areas in the capital, Connaught Place’s monthly rentals have surged to approximately ₹1,150-1,250 per square foot. This hike, driven by strong demand, underscores the area’s status as a premier shopping hub. The data released by Cushman & Wakefield highlights these trends, focusing on the carpet area of ground floor shops.

Khan Market’s Premium Rates

Khan Market, recognized as one of the world’s most expensive retail locations, commands a monthly rental range of ₹1,600-1,650 per square foot. This 7% increase is a testament to the market’s enduring desirability among high-end brands and retailers.

Growth Across Other Markets

In addition to Connaught Place and Khan Market, other areas in Delhi are also witnessing rental increases:

• Greater Kailash-I M-Block Market: Up 12% to ₹475-500 per sq ft
• Kamla Nagar Market: An impressive 25% rise to ₹480-510 per sq ft
• Lajpat Nagar: Increased by 9% to ₹290-310 per sq ft
• Punjabi Bagh: Rents grew by 8% to ₹250-270 per sq ft
• Karol Bagh: A modest uptick of 3% to ₹390-400 per sq ft

Two notable markets, South Extension and Rajouri Garden, maintained steady rental rates at ₹800-850 and ₹250-260 per sq ft, respectively.

Galleria Market in Gurugram

Shifting focus to Gurugram, the Galleria Market has enjoyed a striking 20% year-on-year growth, now with rentals reaching ₹1,150-1,250 per sq ft. The Sector 29 Market, known for its vibrant food and beverage scene, recorded a 13% rise, bringing rents to ₹180-190 per sq ft. In contrast, Noida’s Sector 18 market has kept its rates stable at around ₹200-225 per sq ft.

Leasing Trends

The overall retail leasing activity in Delhi-NCR has seen a significant surge of 57%, with total space leased rising from 2.6 lakh sq ft to an impressive 4.08 lakh sq ft in the January-March window. Notably, high streets have accounted for 61% of these leasing activities, with Gurugram leading the charge, capturing 52% of the quarterly leasing market share.

Sector Highlights

The fashion and food & beverage sectors are driving this retail space demand, each holding a 24% share of the leasing activity. This trend indicates a robust recovery and a growing appetite for retail spaces in the region.

As the retail market continues to evolve, these rental increases reflect not only the resilience of the sector but also the changing preferences of consumers and retailers alike. For those interested in the latest market trends, staying updated on rental rates and leasing activities is crucial in navigating this dynamic landscape.