Delhi high-street rents climb: CP up 14%, Khan Market 7% in Q1 2025
Cushman & Wakefield data shows Delhi-NCR retail real estate surging in Jan-Mar 2025, with Connaught Place rents up 14% and Khan Market 7%. Leasing activity jumped 57%, driven by fashion and F&B demand for prime high-street space.
The development
Delhi-NCR retail real estate saw strong Q1 2025 growth, with Connaught Place rents up 14% and Khan Market 7%. Leasing activity rose 57%, led by fashion and F&B retailer demand for prime high-street space.
The numbers
- 14% rent rise CP
- 7% rent rise Khan Market
- 57% leasing activity rise
Why it matters to operators and investors
With fashion and F&B driving a 57% leasing jump and double-digit rent gains, secure prime high-street footprints early through acquisitions or long-term leases before escalating rents erode expansion economics.
What to watch next
- Q2 2025 leasing growth decelerating below ~20% YoY signals demand normalization
- Vacancy rate ticks up at CP indicating tenant pushback on escalations
- Major fashion/F&B brand announcing India expansion slowdown or exit
- New prime high-street or mixed-use supply additions easing supply crunch
- Consumer discretionary spending or footfall data weakening
- Track Q2 2025 C&W/JLL data for rent continuation vs plateau across CP, Khan Market, and emerging NCR streets
- Monitor listed retailers' (Trent, ABFRL, Shoppers Stop) commentary on rent-to-sales ratios and store productivity
- Watch QSR/cafe chains' (Tata Starbucks, Devyani, Sapphire) prime-location signings as F&B is cited demand driver
- Assess mall REIT and developer (DLF, Phoenix) leasing spreads as substitution check
The counter-case
Rising rents are a cost headwind, not a tailwind, for retailers. A 14% jump in CP rents and 57% surge in leasing demand means occupancy costs are climbing faster than retail sales growth, compressing store-level margins. Prime high-street rent inflation often reflects landlord pricing power and scarcity rather than retailer profitability—the same names paying 14% more may be doing so to defend brand visibility, not because unit economics justify it. If F&B and fashion demand is the driver, that is a thin, fad-sensitive base that can reverse quickly in a consumption slowdown.