A recent survey indicates that Delhi's Khan Market has claimed the title of the most expensive retail outlet neighborhood in India, with current monthly rentals now reaching an impressive Rs 1,480 per sq ft.
Despite the high demand for retail space in this upscale area, rental prices have only managed a slight annual increase of three percent, primarily due to the scarcity of available properties and a relatively low number of market transactions.
Following Khan Market, Mumbai's Linking Road ranks as the second most costly retail locale, with monthly rates at Rs 780 per sq ft, while Connaught Place and South Extension in Delhi follow closely behind.
India is highlighted as one of the top global markets experiencing a significant year-on-year rental growth, as revealed by the same survey.
Throughout the first half of 2013, prime lease rates in various cities remained stable, largely due to strong demand from retailers, specifically from both fashion and food & beverage sectors.
The consistent demand emanating from these industries has contributed to a rental increase of 2.5 percent across the country.
Most investors, except for a handful, appear to be showing a decline in interest toward shopping malls. Instead, retail brands are gravitating towards prominent main street locations to establish their presence in these key markets. Select large-format retailers are also opting for stand-alone or built-to-suit options in India.
On the global stage, Khan Market is positioned at 28th place, firmly holding its ground as the most costly retail space within India.
However, India has slipped in the global rankings from 26th to 28th place, a shift largely attributed to the depreciation of the Indian rupee against the US dollar and the overall stability of rental values, which have experienced limited increases in the retail sector.