Retail space rent in Delhi's Khan market has experienced a 9% annual increase during the April-June quarter of FY27, according to latest data from Cushman & Wakefield. The monthly rent in Khan Market stood at ₹1,700-1,800 per sq ft during April-June 2026, reflecting the continued strength and demand for premium retail spaces in the upscale market area. This rental growth comes amid better demand and supply constraints in the retail sector.
The rental increase comes amid broader market resilience, with India's housing market showing strong fundamentals through the second half of 2026. As reported by The Economic Times, the market is entering H2 2026 in a phase of consolidation rather than correction, supported by ongoing urbanisation, stable employment, and lower home loan rates following cumulative monetary easing. According to Knight Frank India, the sector's performance in the remainder of the year will largely depend on how effectively developers balance fresh launches with buyer demand while maintaining pricing discipline.
The residential real estate sector continues to show strength with 171,471 units sold across eight major cities in H1 2026, while developers launched 187,350 units during the same period, according to Knight Frank India data. Homes priced above ₹1 crore accounted for 54% of total sales, up from 49% a year earlier, reflecting a continued shift towards premium housing. As noted by Knight Frank India, homebuyers are increasingly prioritising better locations, construction quality and long-term value over entry-level pricing, with price appreciation becoming concentrated in premium and luxury segments.
According to Cushman & Wakefield, leasing activity in retail spaces across Delhi-NCR doubled during the April-June timeframe, marking a significant uptick in market dynamics. The monthly rent of major high street locations across Delhi-NCR rose in a range of 2-10%, with Khan Market witnessing the highest growth at 9% year-on-year. Notable areas like Galleria Market in Gurugram recorded 4% growth to ₹1,250-1,350 per sq ft, while Connaught Place saw 2% increase to ₹1,250-1,300 per square feet. South Extension I & II experienced the sharpest surge at 10%, reaching ₹850-900 per sq ft.
Despite the strong performance, the market faces some challenges with sales plateauing and new launches outpacing absorption, as reported by Knight Frank India. The consultancy expects developers may increasingly rely on demand-side incentives such as flexible payment plans and stamp duty waivers if launches continue to exceed sales during the remainder of the year. However, RERA-led reforms and better capital discipline are expected to keep the market stable, preventing a sharp correction. The report indicates that continued infrastructure investment, stable employment conditions and urban migration should help keep the market resilient even as growth moderates.
