Khan Market rents rise 9% in Q1 FY27, stay India's priciest high street
Synopsis
Khan Market has held its crown as India's priciest high street — and it's getting costlier. Rents hit ₹1,700–₹1,800 per square foot in Q1 FY27, up 9% year-on-year, even as Delhi-NCR leasing volumes more than doubled. Supply isn't growing; demand is. That gap is the story.
Key Takeaways
Khan Market rents rose 9 per cent year-on-year to ₹1,700–₹1,800 per sq ft per month in Q1 FY27 .
South Extension I and II posted the steepest growth at 10 per cent , reaching ₹850–₹900 per sq ft .
Delhi-NCR high-street rents broadly rose 2–10 per cent ; only Kamla Nagar remained flat.
Total retail leasing across malls and high streets in Delhi-NCR more than doubled to 0.67 million sq ft in the quarter.
Malls captured 63 per cent of leasing volume; main streets accounted for 37 per cent .
Data sourced from a Cushman & Wakefield report on Q1 FY27 retail real estate.
Khan Market in New Delhi retained its position as India's most expensive high street in Q1 FY27, with monthly retail rents climbing 9 per cent year-on-year to ₹1,700–₹1,800 per square foot, according to a report by real estate services firm Cushman & Wakefield. The rise was driven by strengthening demand against a backdrop of constrained supply in the market.
Delhi-NCR High Streets: Key Rental Movements
Across major high-street locations in the Delhi-National Capital Region (NCR), rents rose between 2 per cent and 10 per cent on an annual basis. South Extension I and II recorded the steepest growth, surging 10 per cent to ₹850–₹900 per square foot per month — the sharpest increase among all tracked markets.
Connaught Place's Inner Circle saw a 2 per cent uptick to ₹1,250–₹1,300 per square foot, while Galleria Market in Gurugram grew 4 per cent to ₹1,250–₹1,350 per square foot. Greater Kailash-I, M Block recorded a 2 per cent rise to ₹490–₹510 per square foot, and Karol Bagh climbed 2 per cent to ₹415–₹425 per square foot.
Lajpat Nagar rents stood at ₹300–₹320 per square foot per month, up 3 per cent annually, while Rajouri Garden saw a 2 per cent hike to ₹260–₹270 per square foot. Notably, Kamla Nagar was the only market to remain flat during the quarter.
What Cushman & Wakefield's Report Said
The Cushman & Wakefield report stated: 'Major main street rentals across Delhi NCR witnessed growth compared to last year. Khan Market witnessed 9 per cent year-on-year growth, while Galleria Market (Gurugram) and Connaught Place have seen annual rental increases of 4 per cent and 2 per cent, respectively.'
The data underscores Khan Market's enduring appeal among premium retailers and luxury brands, even as alternate high streets in the NCR have matured and narrowed the gap in recent years.
Leasing Activity More Than Doubles
Overall leasing of retail spaces across shopping malls and major high streets in Delhi-NCR more than doubled year-on-year during the quarter, reaching 0.67 million square feet. Shopping malls captured 63 per cent of the quarterly leasing volume, while main streets accounted for the remaining 37 per cent.
This surge in leasing activity signals broad-based retail expansion across the region, not limited to premium addresses. The combination of rising footfalls, post-pandemic consumption recovery, and limited new supply on established high streets has kept upward pressure on rents.
What This Means for Retailers and Investors
For retailers, the sustained rent inflation in prime Delhi-NCR corridors raises occupancy costs at a time when consumer discretionary spending remains uneven. For property investors and landlords, however, the data affirms that well-located high-street assets continue to command a significant premium over mall-based alternatives.
With supply constraints unlikely to ease in established markets like Khan Market and Connaught Place in the near term, rental pressures are expected to persist into the coming quarters.
Point of View
So incumbents keep pricing power. What is underreported is the divergence: South Extension's 10 per cent surge suggests premium retail demand is spreading beyond the traditional Khan Market-Connaught Place axis. If leasing volumes have genuinely doubled in a single quarter, the question is whether that pace is sustainable or a post-pandemic catch-up that will taper. Retailers absorbing these costs will eventually pass them to consumers — and in a market where discretionary spending is still finding its footing, that transmission risk deserves more attention than headline rent figures typically get.
NationPress
10 Jul 2026
Frequently Asked Questions
What are the current retail rents in Khan Market as of Q1 FY27?
Retail rents in Khan Market stood at ₹1,700–₹1,800 per square foot per month in Q1 FY27, a 9 per cent increase year-on-year, according to a Cushman & Wakefield report. This keeps it the most expensive high street in India.
Which Delhi-NCR high street saw the highest rent growth in Q1 FY27?
South Extension I and II recorded the highest annual rental growth at 10 per cent, with rents reaching ₹850–₹900 per square foot per month. Khan Market followed with 9 per cent growth.
How did overall retail leasing in Delhi-NCR perform in Q1 FY27?
Retail leasing across malls and high streets in Delhi-NCR more than doubled year-on-year to 0.67 million square feet in Q1 FY27. Malls accounted for 63 per cent of that volume, with main streets contributing 37 per cent.
Which Delhi-NCR market saw no rent increase in Q1 FY27?
Kamla Nagar was the only high-street market in Delhi-NCR to remain flat in Q1 FY27, while all other tracked locations recorded annual rent increases ranging from 2 to 10 per cent.
What are current rents at Connaught Place and Galleria Market Gurugram?
Connaught Place's Inner Circle rents rose 2 per cent to ₹1,250–₹1,300 per square foot per month, while Galleria Market in Gurugram grew 4 per cent to ₹1,250–₹1,350 per square foot, according to the Cushman & Wakefield report.
