Image for representation showing a view of Khan Market.
Credit: iStock Photo
New Delhi: Delhi's upscale Khan Market has retained the 22nd rank in a global list of most expensive high-street retail locations with an annual rent of over Rs 19,000 ($229) per sq ft, according to Cushman & Wakefield.
Via Monte Napoleone in Milan, Italy, has become the most expensive main street globally with an annual rent of $2,047 per sq ft, beating New York's Upper 5th Avenue (49th to 60th Sts) which commands a rental of $2,000 per sq ft a year.
Global real estate consultant Cushman & Wakefield on Thursday released the 34th edition of its flagship retail report 'Main Streets Across The World 2024' that focuses on headline rents in 138 best-in-class urban retail locations across the globe.
The global index ranks the most expensive destination in each market.
With rents at around Rs 19,330 per square foot annually ($229), Khan Market retains its position on the prestigious global list and continues to be India's most expensive high street, the consultant said. Khan Market registered a 7 per cent year-on-year rental growth.
Milan's Via Monte Napoleone, where rents have risen by nearly a third in the past two years, has overtaken New York's Upper 5th Avenue to be crowned the world's most expensive retail destination. It is the first time a European street has topped the global rankings, the consultant said.
Commenting on the report, Saurabh Shatdal, Managing Director, Capital Markets and Head-Retail-India, Cushman & Wakefield, said, "Khan Market's position among the world's top retail destinations underscores the resilience and strength of India's retail sector." "Known for its curated mix of premium brands and upscale boutiques, Khan Market attracts affluent shoppers, solidifying its reputation as a high-end retail hotspot. The limited availability of retail space in the area creates intense competition, pushing rental values higher," he said.
With shopping malls facing supply constraints, Shatdal said the main streets across India are thriving, driven by robust demand and strong rental growth.
In India, so far this calendar year, main streets have recorded a leasing of 3.8 million square feet of retail space, marking an 11 per cent year-on-year growth.
"Globally, super-prime physical retail spaces remain central to retailers' strategies, highlighting the enduring importance of vibrant shopping destinations like Khan Market. With India's robust economic growth and evolving consumer preferences, the country's retail sector is poised for sustained success," Shatdal said.
New Bond Street, London, is at the third position with annual rent of USD 1,762 per sq ft, followed by Tsim Sha Tsui (main street shops), Hong Kong ($1,607 a sq ft); Avenue des Champs Élysées, Paris ($1,282 a sq ft); Ginza, Tokyo ($1,186 per sq ft); Bahnhofstrasse, Zurich ($981 per sq ft); Pitt Street Mall, Sydney ($802 per sq ft); Myeongdong, Seoul ($688 per sq ft); and Kohlmarkt, Vienna ($553 per sq ft annually).
The report further highlighted that the Indian economy has been the strongest major economy in the world this year, a trend reflected in its robust rental growth performance.
"Indiranagar 100 Feet Road in Bengaluru leads the region, reporting rental growth of 32 per cent YoY (year-on-year).
"Whilst reporting relatively more modest uplifts, MG Road in Pune, Anna Nagar in Chennai, Fort/Fountain in Mumbai and Park Street in Kolkata all recorded annual rent growth in excess of 10 per cent. Rent growth across the 16 locations tracked across India averaged a 9 per cent increase YoY," Cushman & Wakefield said.