Delhi’s Khan Market has emerged as the most expensive retail location in India and has clinched the 24th position in global rankings as per the latest report released by Cushman & Wakefield, a real estate consultancy firm.
Khan Market, despite registering no change in rental values, moved up by four positions in the global rankings since 2016 on account of some key global markets facing devaluation in their rentals. Compared to peer markets in the APAC region, Khan Market was ranked at 11 while DLF Galeria in Gurugram and Linking Road in Mumbai are ranked 19 and 20 respectively in the APAC rankings.
New York’s Upper 5th Avenue retained its top place, while Hong Kong’s Causeway Bay and London’s Bond Street were ranked 2nd and 3rd in the global ranking. The survey takes into consideration over 400 retail locations globally across 66 countries for the annual survey.
In the APAC region, the Indian markets fared better with Khan Market taking the 11th position in the ranking while Gurugram’s DLF Galleria and Mumbai’s Linking Road have finished 19th and 20th in ranking. These micro-markets have been commanding high rentals as these are established retail destinations, due to factors like their geographic locations allowing access to larger catchment for the retailers. The brands that are currently present in the location have also attracted other major brands to establish or aspire to establish their stores in these locations. Khan Market in New Delhi and Linking Road in Mumbai have also had a strong presence of global and high-end domestic brands. Further low vacancy and churn have ensured that these locations continue to quote high rental values.
Within India, Connaught Place in New Delhi saw the highest year -on-year rental growth at 11 percent giving the location a new lease of life. Connaught Place, which had slipped from its previous superior retail destination status, saw renewed interest from retailers across categories.
The location has gone through a reinvention in the last few years, with the metro construction being completed and making it easily accessible from across the city. The presence of curated gardens and refurbished cinema halls in the area have further added to its appeal as a family destination and we envisage more brands looking at setting up their flagship stores in the location.
Kolkata’s Park Street and Camac Street were a part of the top twenty in India, due to high rental values, albeit they remained unchanged in one year. These traditional retail locations have been high on demand from brands that are either looking at entering or expanding in the city owing to excellent catchment and existing retailer profile.
The retail sector in India has remained cautious in activities, even though there was visible momentum in leasing across main streets as well as shopping centres. The leasing activities across most key micro-markets was led by of food & beverages and fashion & lifestyle brands, both following an aggressive growth strategy in India.
India’s current economic growth coupled with a favorable demographics of the population creates a conducive environment for growth of retail sector in the country. This further gets strengthened as an increasing number of global retailers start turning towards India in anticipation of more relaxation in entry policies by the government, says Anshul Jain, Country Head & Managing Director, India, Cushman & Wakefield.