Delhi's Khan Market Sees 8% Rental Growth of Retail Space Last Year, 14% Rise at Gurugram's Galleria Market: Cushman

Why It Matters

Rising rents signal a tightening retail market, raising entry costs for brands but confirming high‑street locations as lucrative channels for premium consumer engagement.

Key Takeaways

• Khan Market rent hits Rs 1,800 sq ft, +8% YoY
• Galleria Market leads with 14% rent increase
• Delhi‑NCR leasing reaches 2.25 M sq ft, +83% YoY
• F&B and fashion drive high‑street demand
• Tight vacancy forces premium brands into limited spaces

Pulse Analysis

The latest Cushman & Wakefield data shows that Delhi‑NCR’s high‑street retail market continued its upward trajectory in 2025, with rents rising between 2 and 14 percent across the region. Khan Market, long regarded as India’s most premium shopping strip, posted an 8‑percent increase to Rs 1,700‑1,800 per square foot, while Gurugram’s Galleria Market recorded the steepest jump at 14 percent. Overall leasing activity hit 2.25 million square feet, an 83‑percent year‑on‑year surge and the strongest level since 2019, underscoring a robust recovery after pandemic‑induced softness.

The rent premium is being driven primarily by food‑and‑beverage and fashion tenants that seek high‑visibility corridors with steady footfall. Brands ranging from upscale cafés to international apparel houses are expanding their footprint, willing to pay top‑dollar rates to secure carpet‑area space on prime streets. Tight vacancy rates and the scarcity of new prime‑location developments amplify competition, pushing landlords to raise asking rents. This environment favors established luxury and lifestyle players, while newer entrants must weigh higher cost against the potential for brand positioning among affluent consumers.

Looking ahead, the limited pipeline of fresh retail projects in Delhi‑NCR suggests that rental pressure will likely persist through 2026. Investors may respond by repurposing existing assets, enhancing experiential offerings, or negotiating longer lease terms to lock in current rates. Meanwhile, the strong leasing momentum—55 percent of take‑up on main streets versus 45 percent in malls—signals a renewed confidence in street‑level retail as a growth engine. Companies that align product mix with the high‑consumption corridors and leverage the premium exposure can capture incremental revenue despite the rising cost base.