17 August 2023, Mumbai
Delhi's upscale high-street retail hub enjoyed a notable 7% YoY growth in average monthly rent, reaching Rs 1,500 per sq ft from April to June, as reported by Cushman & Wakefield.
Khan Market Rents Recover to Pre-Pandemic Levels
Khan Market, India's priciest retail locale, rebounded after a significant downturn during the Covid outbreak. Monthly rent in Khan Market plummeted to Rs 1,200 per sq ft in July-September 2020, a 14% drop from the prior year. However, Cushman & Wakefield's Marketbeat report for April-June 2023 confirmed Khan Market's rent recovery to Rs 1,500 per sq ft.
Other high-street locations in Delhi also saw rent growth, with South Extension I & II experiencing a 14% hike to Rs 800 per sq ft, and Lajpat Nagar observing a 10% rise to Rs 275 per sq ft. Connaught Place held steady at Rs 1,050 per sq ft.
Multiple data points
Gurugram's DLF Galleria saw the highest rent growth, soaring by 33% to Rs 1,000 per sq ft. Sector 29 dipped 3% to Rs 160 per sq ft, and DLF Cyber Hub stayed flat at Rs 250 per sq ft during April-June. Noida's Sector 18 saw a 5% YoY uptick to Rs 200 per sq ft in Q2.
Trade is started to note increased footfall in malls and high streets post-pandemic, with demand outstripping supply in major and tier 2 & 3 cities. Cushman & Wakefield's April-June report indicated a 13% YoY surge in leasing activity, totaling 0.10 million sq ft, in Delhi-NCR's high streets.
Study; The report also noted that the demand for high-street retail space is being driven by a number of factors, including the increasing popularity of e-commerce, the growing middle class, and the increasing disposable incomes of consumers.
The growth in high-street retail rents is a positive sign for the retail sector in Delhi-NCR. It suggests that the sector is recovering from the impact of the pandemic and is well-positioned for future growth.
