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A recent report by Cushman & Wakefield, a renowned real estate consultancy firm, unveiled the burgeoning stature of Khan Market in Delhi as the most expensive retail market in India, clinching the 22nd spot among the top global main street markets. This market demonstrated a commendable 3 percent year-on-year growth in rentals, solidifying its position in the prestigious ranking.
A noteworthy revelation was the presence of 16 Indian main streets among the 51 most expensive in the Asia-Pacific (APAC) region. New York’s Fifth Avenue retained its prime status as the world’s priciest retail destination, despite experiencing stagnant rental growth year-on-year. Meanwhile, Milan’s Via Montenapoleone surged to second place, displacing Hong Kong’s Tsim Sha Tsui, which slipped to third.
The rental growth trajectory of Khan Market showcased a remarkable 7 percent from the pre-pandemic era to the present, attaining an annual rent of $217 per square foot (approximately Rs 1506 per square foot per month). However, in this year's global ranking, Khan Market slightly receded from its 2022 position, sliding to 22nd place from the previous 21st spot.
The report outlined the top five costliest main streets in India within the APAC region, featuring Khan Market (22nd), Connaught Place (30th), Mumbai's Linking Road (33rd), Gurugram's Galleria Market (31st), and Kolkata's Park Street (37th). Conversely, Anna Nagar 2nd Avenue and Pondy Bazaar in Chennai emerged as the most affordable locations in the APAC region, with rentals at $22 per square foot per year (Rs 152.7 per square foot per month) and $24 per square foot per year (Rs 166.6 per square foot per month) respectively.
An intriguing observation was the notable 40 percent surge in rentals at Banjara Hills in Hyderabad, although it remained categorized among the relatively economical markets in the Asia-Pacific region.
Saurabh Shatdal, MD of capital markets and head of retail at Cushman & Wakefield India commented on the advantageous position of Indian main streets due to the scarcity of space within high-quality retail malls. He emphasized the substantial 10 percent year-on-year growth in main street rentals on average. Moreover, the influx of premium brands into these main streets has augmented the demand for space, resulting in an evident uplift in rents and overall character.
In conclusion, the report paints a vivid picture of the evolving landscape of retail markets in India and the broader APAC region. It showcases the dynamic shifts in rental values, the rising prominence of certain locations, and the compelling interplay between supply, demand, and the emergence of premium brands as key influencers in shaping the retail market dynamics.
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