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Khan Market rents reach Rs 1500 per sq ft a month, breach pre-covid levels

Rents at Khan Market are almost double the most expensive retail locations in the financial capital, Mumbai

Khan Market

Khan Market

BS Web Team New Delhi

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Rents at Delhi's Khan market, the country's most expensive retail real estate, have passed the pre-pandemic levels for the first time and reached Rs 1,500 per square foot per month, The Economic Times (ET) has reported.

Rents at Khan Market are almost double the most expensive retail locations in the financial capital, Mumbai. According to industry experts cited in the report, rents in Bengaluru are one-fourth of those at Khan Market.

Previously, monthly rent at Khan Market had reached Rs 1,400 per square foot per month in 2019. However, as the pandemic broke out and lockdowns were imposed, the rents fell to Rs 1,200 in 2020, the report said.

Compared to Khan market's rents, monthly rents at Mumbai's premium locations, such as Linking Road, Breach Candy, and Colaba, are in the range of Rs 600-900 per square foot per month. Rents in Mumbai have yet to reach the levels before the outbreak of the pandemic, the newspaper said, citing a study by commercial real estate services firm Cushman & Wakefield.

Rents at retail hubs in Bengaluru have crossed the pre-Covid levels to reach Rs 200-400 per square per month.

Managing director for north India at Cushman & Wakefield, Vibhor Jain, told ET, "The retail sector has not only witnessed a great rebound post-Covid, but also a dearth of quality space in prominent grade retail malls."

Rents for premium locations in Bengaluru have increased by 15 per cent year-on-year in the first quarter of 2023-24, whereas the rents have increased by up to 30 per cent in Delhi and Gurgaon during the same period, the report added.

Top brands, particularly in the fashion and food and beverages (F&B) sectors, are looking for space in primary city locations. "The rentals are further expected to go up with the supply being limited in prominent grade retail malls," Jain said.

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First Published: Jul 25 2023 | 9:58 AM IST

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