Traders at the upscale Khan Market say the area should be among the top 10 most expensive retail locations in the world, and not at spot 28 as estimated in a report by property consultants.
With rising demand for real estate here, monthly rent is over Rs 1,600 per sq ft, says the Khan Market Traders Association.
Cushman & Wakefield’s report said Khan Market slipped two positions to world’s 28th most expensive retail location, though it is still the costliest in the country with monthly rentals Rs 1,250 per sq ft.
“What the report said, Rs 1,250, is an old rate. Now, Khan Market should be 4th or 6th globally. Demand to set up shop here is very, very high,” association president, Sanjeev Mehra, told HT.
Accessibility, security, sanitation, parking space and high conversion rates put Khan Market’s real estate in high demand, said Mehra. “Visitors who come here can be converted into customers easily. And this conversion rate is much better than malls. This is because of a mix of stores here — be it designer boutiques, top-notch bookstores, trendy cafes, fine dining restaurants or even grocery stores,” he said.
Monthly rents of two latest shops which got new tenants are Rs 8.5 lakh and Rs 8.75 lakh, traders said. The rents have seen an astronomical rise. The average monthly rate of a shop here in 1994 was Rs 15,000. In 2000, it became Rs 1,00,000 and in 2004, it went up to Rs 2,50,000.
“My father used to run a shop here which I took over in 1979-80. We have seen the market grow to what it is today. Khan Market is Delhi’s high street,” said Paramjit Singh, owner of Artful Baker.
If it is Linking Road and Colaba Causeway in Mumbai, Park Street in Kolkata and Brigade Road in Bangalore, it is Khan Market in Delhi, says shopowners.
However, not all shopkeepers are happy the market’s rising realty value. “The rent here is so high that it gets difficult for tenants, at times, to even sustain. They end up leaving their space. The bigger brands and designer boutiques step in and set up shop. Shop owners rake in the moolah, while small tenants struggle,” said a shopkeeper, requesting anonymity.