Khan Market is a neighbourhood market in Central Delhi, yet it commands India’s highest rent in India. Its prime locations, and fewer shops have made it the most sought after commercial space. Khan market can not expand or change its original structure as per the building laws.
After the partition of 1947 Government built Khan Market as a refugee colony, to rebuild the lives of the citizens. Government had built similar markets such as Meherchand Market and Khanna Market. Both are a kilometer or a two away from Khan Market. As per American commercial real estate services company, Cushman & Wakefield, in 2019, Khan Market commands maximum rent sq ft per month in India, at Rs 1,350. Mumbai’s Linking Road is marked at Rs 800, and Hyderabad’s MG Road is Rs 120. Its 2017 report stated that Khan Market was the 24th most expensive retail location in the world and the 11th most expensive retail location in Asia-Pacific.
Somya Lakhani writes, “Today, Khan Market boasts an array of multi-cuisine restaurants, bars, patisseries, upmarket clothing labels and its three most famous book stores — Faqir Chand & Sons, Bahrisons, and Full Circle. The first two were set up in the ’50s. There’s also a shoe store called KK Lee, being run by a Chinese family since the 50s.”
Highest rent means there is lack of commerial spaces for the businesses. Therefore, busnisses have moved to suburbs such as Noida and Gurgaon. Malls such as Mall of India and Ambience Mall cater to the same crowd of expats and high net worth individuals. They also offer better facilities such as parking, and more options such as movie halls and more shops. In the long term high rent, lack of expansion and renovation will harm the market.