Khan Market in New Delhi is the most costly retail location in India and the 24th worldwide, according to a report by global real estate services firm Cushman & Wakefield.
Khan Market is the most costly market in India since five years, as demand for retail space has stay steady owing to its upscale location and current occupier profile, the report noted, ranking the posh shopping place at the top.
With Rs.1,250 ($19) per sq ft rental, Khan Market is followed by Connaught Place in the city centre at Rs.850 per sq ft and DLF Galleria at Gurgaon in Haryana and South development in south Delhi at Rs.750 per sq ft.
Moving two place up to 24th worldwide and 10th in the Asia Pacific region, Khan Market is centrally located in the national capital, flanked by high-end residential catchment area, with many global and national brands’ stores in its vicinity, the report on ‘Main streets across the world’ pointed out.
New York’s Upper 5th Avenue retained top spot with rental at a whopping $3,500 per sq ft, followed by Hong Kong’s Causeway Bay at $2,399, Avenue de Champs Elysees in Paris at $1,372 and Bond Street in London at $1,321.
In India, New Delhi and NCR (national capital region) accounted for top four most costly locations in the country due to steady developed in retail activities year-on-year (YoY), entry of new brands and detail of existing brands.
DLF Galleria witnessed 15 percent year-on-year hike in rentals owing to better tenant mix and better quality of retail space and high footfalls due to location and amenities.
Retail locations in the country’s commercial capital Mumbai such as Colaba Causeway in south suburb (ranked sixth) saw 14 per cent year-on-year rental decline, while it stay flat on Linking Road (ranked fifth) in western suburb.
Poor infrastructure and lack of amenities for shoppers have led to these locations fall out of preference, while Lower Parel and Kurla are preferred for their quality space and increasingly catchment areas.
Vashi and Chembur in the western city’s northwest and northeast suburbs have, however, seen 14.8 per cent and 9.4 per cent rise in rental values year-on-year, as population with disposable income grew proportionately.
Park Street and Camac Street ranked among top 10 in the Indian retail market despite recording no change in rental values on account of robust retailer interest and a regular inflow of brands to their location.