India’s retail landscape has emerged as a flexible and fast-paced market for the smooth entry of several players. This is easily understood by the fact that India is the world fifth largest destination in the retail world.
The country’s demographic profile and economic growth resulted in the expansion of the retail sector which is expected to reach US$ 1.7 trillion dollars by 2026. It will also generate many employment opportunities within the market from 45 to 50 million.
This reliable economic growth in India is backed by various causes like high disposable income, rising middle-class influence, increasing wealth, and growth of the young population.
The prominent retail sector in the country has both budget-oriented and expensive markets. These markets are designed to cater to the various income groups of the country.
Expensive Market Scenario of India
All across the globe, the top retail corners in every country have facilitated the costliest markets based on their high rental value. This has also captured headlines in the newspapers about the retail and real estate performance.
The high rentals of the shops in all the cities are mainly due to the availability of limited quality space. There is a rising demand in various quarters like fashion and apparel, F&B sector, movie theatres. It has further propelled escalation in the rental rates of these shopping locations.
In India, Khan Market is crowned as the costliest market location due to its highest shop rents. While maximum expensive retail micro-markets are situated in Delhi-NCR, there are several other places in India witnessing the rise.
In this article, we will discuss the top 10 costliest markets in India based on the rental rates per square foot area.
Top 10 Costliest Markets in India
1. Khan Market, Delhi
National Capital’s upscale retail location, Khan Market is the most expensive market to rent a shop in the country. This posh and classy area is the favourite spot for the diplomats and ex-pats.
It commands the highest rentals in the city with Rs.1,250 per square foot area. It is the world’s 20th most expensive retail location based on the reports of global property consultant Cushman and Wakefield.
It features up-market boutiques, quality bookstores, grocers, tailors, lifestyle stores, branded retail showroom, and others. There are other shops that specialise in lighting equipment and household furnishings. The area is also known for eateries like cafes, bakeries, restaurants, and street food joints.
2. Linking Road, Mumbai
Mumbai’s Linking Road has secured the 20th position in Asia Pacific Region based on a collected report. It is the fourth most expensive shopping street in India with rentals of Rs. 760 per square foot area.
Located in the suburbs of Mumbai, this shopping hub has stretched beyond its original location.
This booming retail market in the financial hub of the country has appealed to the eyes of global retailers.
It’s a shopper’s paradise known to serve cheap items on road along with featuring high-end international brands. The presence of several food joints like cafes and bars has made the affair pretty glamorous at night.
3. Park Street, Kolkata
Kolkata’s Park Street managed to secure the 7th position among the top 10 expensive markets in India. The per square footage area cost Rs.500 a year.
Previously the area was known as the Burial Ground Road, and officially it is called the Mother Teresa Sarani. The prolific nightlife of the city in the early 50s-60s was centred around Park Street.
It has been popular for its flourishing bars and restaurants like Mocambo, Bar-B-Q, Moulin Rouge, Trincas, Peter Cat, and many others. Apart from its sophisticated dining options, the area holds prominent bookstores, music stores, lifestyle brands, boutiques, etc.
4. Connaught Place, Delhi
Connaught Place of New Delhi is one of the largest commercial, financial, and business centres of the country. The rentals of this place are Rs. 850 per square feet in a year. The CRBE real estate firm in its report has tagged Connaught Place as the ninth most expensive office market globally.
The outer circle of this popular area is known as Connaught Circle which is a bustling street full of lifestyle and branded retail stores, restaurants, and hotels.
5. Colaba Causeway, Mumbai
Originally known as Shahid Bhagat Singh Road, Colaba Causeway is a happening commercial street in Mumbai. It has ranked 6th on India’s Index and registered a rise of 4.2% with rentals of Rs. 625 per square feet a year.
This street cradles cheap items like street fashion to high-end luxury boutiques. At a throwaway distance, you can locate famous tourist attractions like the Gateway of India and the Taj Hotel.
With exquisite stores, you also get an option to explore the quintessential eateries of the place.
6. DLF Galleria, Gurugram
DLF Galleria happens to be the third-highest expensive market in the country. This oldest open market platform is situated in Gurugram catering to the areas of NCR. The rentals were charged at Rs.800 per square foot per year.
Galleria is a popular meet-up destination supporting a good mix of brands and a variety of restaurants. It has an array of retail stores like home furnishing shops, boutiques, footwear, electronics, fashion, and apparel, gift-stationary shops, pharmacies, groceries, restaurants, street food, and much more.
7. Camac Street, Kolkata
Camac Street lies in between the Park Street area and the AJC Bose Road. The rental rates have been stagnant for a few years at Rs. 450 per square foot, but it has managed to be on the list of expensive markets.
The area also intersects with two other important roads of Kolkata, Middleton Street, and Shakesphere Sarani. Camac Street is known for its commercial establishments which include posh shopping centres, malls, boutique stores, restaurants, and standalone retail outlets.
8. Great Kailash, Delhi
Great Kailash is a residential colony in South Delhi comprising of multiple markets and neighbouring areas. The rental charges of the place are Rs. 460 per square foot a year. It is a place for some affluent dwellers and families in Delhi.
The place has been split up into two zones Part 1 and Part 2. Both of the zones have flourishing markets with retail brands, fine dine restaurants, and QSR.
9. Kemps Corner, Mumbai
Kemps Corner in Mumbai is another expensive market location in India. The per square foot rental charges in a year is around Rs. 425. This classy neighbourhood is flanked by Altamount Road is one side and Malabar Hills on the other end.
This South Mumbai locality features various upmarket residential establishments. The commercial landscape is also promising with high-end shopping brands and restaurants.
10. Indiranagar, Bangalore
Indiranagar in Bangalore is a blooming expensive location dominated by houses and bungalows owned by defence personnel. The recent capital rate of Indiranagar is around Rs.10,200 per square foot.
It boasts of its organised infrastructure and good connectivity to Whitefield and M G Road through Inner Ring Road. The highlights of the commercial scene in the area are the posh clubs, high-end brands, and multi-cuisine restaurants.
There was a marginal increase in the rental charges in big metro cities like Delhi, Mumbai, and Bengaluru. Other cosmopolitan cities like Kolkata, Pune, Chennai recorded a greater rental uplift where it has a more vibrant and prospering street culture.
It is projected that India’s retail market scene will add over 39 million space by the end of 2020.
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