Delhi's Connaught Place sees 14% increase in rent for retail spaces, Khan Market 7% in Jan-Mar: C&W
Gurugram’s Galleria Market witnessed a 20% growth y-o-y growth, Connaught Place (14%), Khan Market (7%), and Sector 29, Gurugram (12-15%)
Main high street rentals surged across locations with Delhi's Connaught Place witnessing a 14% annual increase for retail spaces during the January-March period, while upscale high street location Khan Market saw a 7% rise on the back of strong demand from retailers, according to Cushman & Wakefield.
Main street rentals surged across key locations, with Galleria Market (Gurugram) witnessing a 20% growth y-o-y, Connaught Place (14%), Khan Market (7%), and Sector 29, Gurugram (12-15%), while South Extension and Rajouri Garden remained stable, it said.
According to Cushman & Wakefield data, the leasing of retail space in shopping malls and high streets in Delhi-NCR increased 57% in January-March this year to 4.08 lakh sq ft from 2.6 lakh sq ft in the year-ago period.
Gurugram had a 52% share in quarterly leasing, followed by Noida (40%) and Delhi NCT (8%).
While main street leasing tripled y-o-y, mall leasing declined by 12% y-o-y, the report showed.
High streets accounted for 61% of leasing activities.
Monthly main-street rentals in NCR
Monthly rentals at Connaught Place (Inner Circle) -- a prominent high-street retail location in the national capital -- stood at ₹1,150-1,250 per square foot during the first quarter of 2025, an increase of 14% year-on-year, the data from real estate consultant Cushman & Wakefield showed.
Khan Market, one of the costliest high-street locations globally, commanded a monthly rental of ₹1,600-1,650 per sq ft in January-March, an increase of 7 per cent year-on-year.
The Fashion and F&B segments led space take-up with 24% share each, followed by Entertainment (18%) and Department Stores (11%), with F&B leasing nearly doubling y-o-y.
With no new mall completions in Q1, mall vacancy dropped by 38 bps in the quarter and 3.5 percentage points y-o-y to 12.1%, with superior malls maintaining tight vacancy (~3%) while non-superior malls saw ~20% vacancy, the report showed.
According to the report, leasing activity crossed 2.4 million square feet (MSF) in the first quarter of the year across the top 8 cities. Both malls and mainstreets contributed to this growth owing to the commencement of new supply in emerging locations. The report highlighted that Hyderabad was the frontrunner in terms of leasing volume, contributing 34% (0.8 MSF) of the total leasing activity, with a staggering 106% yoy growth.
Saurabh Shatdal, Managing Director, Capital Markets and Head-Retail, India said, “India’s retail sector is evolving at a dynamic pace, and the strong leasing activity in Q1 2025 reflects growing market confidence. We’re seeing a clear trend where retail demand is following new, quality supply—cities with fresh developments are witnessing heightened transaction volumes. Beyond traditional malls, new retail hubs are emerging within mixed-use developments, including office and residential complexes. With close to 7 million square feet of new supply expected over the next three quarters—largely comprising premium Grade A malls—we expect this positive momentum to continue well into the year.”
