Commercial property returns: High rentals continue from Khan Market to Karol Bagh, A-grade malls offer stable returns; check Bengaluru, Mumbai, Hyderabad, Chennai trends
Prime Delhi markets like Khan Market and Lajpat Nagar are commanding high commercial property rentals, a recent report reveals. While premium malls offer consistent returns, many brands are opting for high streets due to limited mall inventory. Th...
By Neelanjit Das, ET Online | Updated:
ET Online
In today’s world of top-notch A-grade malls, street markets like Delhi’s Khan Market, Bengaluru’s Indiranagar, Kolkata’s Park Street and Camac Street, Chennai’s Anna Nagar, Hyderabad’s Himayat Nagar and Mumbai’s Linking Road still manage to command high rental prices, which in turn offers a great return on commercial real estate investment.
The RELEAP 2026 report by Anarock highlights that retailers were still keen on high-street leasing during H2 2025. Key high-street micro-markets across cities saw notable rental appreciation, supported by strong absorption of available space by retailers. However, this trend is not purely demand-driven.
The report indicates that with premium mall vacancy levels staying low, many brands, especially those in fashion, luxury, food and beverage are increasingly turning to high streets as a viable expansion option. In many cases, high-street locations are being leveraged to maintain market presence and growth momentum in the absence of available mall inventory.
In contrast, the report said mall rentals have remained relatively stable, with selective growth seen in high-performing Grade A assets. This divergence implies that while premium malls are doing well, the wider mall ecosystem is feeling the pressure to stand out through curation, experience design, and anchor mix.
Keep reading to learn about the city-wise trends.
Among categories, apparel-led leasing, followed by food & beverages and family entertainment centres, show strong traction in both fashion and experience-led retail formats.
Unit: Average rentals on YOY Basis (INR per sq. ft)
The report says consumers prefer spaces that offer more than just products like purpose, engagement, and a reason to visit.
Among categories, apparel led leasing activity, followed by food & beverages and family entertainment centres, indicating strong traction in both fashion and experience-led retail formats
Unit: Average rentals on YOY Basis (INR per sq. ft)
Nearly 70% of the transactions are within the 1,000–5,000 sq. ft. range, indicating strong demand for scalable, mid-box retail spaces. Among categories, apparel emerged as the leading segment in terms of total area leased, followed by hypermarkets/supermarkets and family entertainment centres, highlighting strong demand across both discretionary and consumption-led segments.
Unit: Average rentals on YOY Basis (INR per sq. ft)
Among categories, apparel dominated leasing activity, followed by hypermarkets/supermarkets and family entertainment centres, underscoring the growing importance of anchor-led and experience-driven retail.
Unit: Average rentals on YOY Basis (INR per sq. ft)
Among categories, apparel led leasing activity, followed by jewellery & precious stones and electronics, indicating a preference for discretionary and high-value retail categories.
Unit: Average rentals on YOY Basis (INR per sq. ft)
The RELEAP 2026 report by Anarock highlights that retailers were still keen on high-street leasing during H2 2025. Key high-street micro-markets across cities saw notable rental appreciation, supported by strong absorption of available space by retailers. However, this trend is not purely demand-driven.
The report indicates that with premium mall vacancy levels staying low, many brands, especially those in fashion, luxury, food and beverage are increasingly turning to high streets as a viable expansion option. In many cases, high-street locations are being leveraged to maintain market presence and growth momentum in the absence of available mall inventory.
In contrast, the report said mall rentals have remained relatively stable, with selective growth seen in high-performing Grade A assets. This divergence implies that while premium malls are doing well, the wider mall ecosystem is feeling the pressure to stand out through curation, experience design, and anchor mix.
Keep reading to learn about the city-wise trends.
Delhi NCR
The report shows that the Delhi NCR retail market is witnessing strong activity across mid-to-large store formats, with significant traction in both 1,000–2,000 sq. ft. and 2,000–5,000 sq. ft. segments. Together, these account for a dominant share of leasing, highlighting robust demand for scalable retail spaces.Among categories, apparel-led leasing, followed by food & beverages and family entertainment centres, show strong traction in both fashion and experience-led retail formats.
The report says consumers prefer spaces that offer more than just products like purpose, engagement, and a reason to visit.
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Mumbai
MMR’s retail market is dominated by smaller store formats, with the sub-1,000 sq. ft. segment accounting for the highest share of transactions. However, there is also steady activity across midsized formats, reflecting a mix of high-street driven demand and space constraints.Among categories, apparel led leasing activity, followed by food & beverages and family entertainment centres, indicating strong traction in both fashion and experience-led retail formats
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Bengaluru
The Bengaluru retail market is witnessing a balanced distribution across mid-sized store formats, with the 2,000–5,000 sq. ft. segment leading activity.Nearly 70% of the transactions are within the 1,000–5,000 sq. ft. range, indicating strong demand for scalable, mid-box retail spaces. Among categories, apparel emerged as the leading segment in terms of total area leased, followed by hypermarkets/supermarkets and family entertainment centres, highlighting strong demand across both discretionary and consumption-led segments.
Unit: Average rentals on YOY Basis (INR per sq. ft)
Hyderabad
Hyderabad is seeing strong traction in larger store formats, with the 2,000–5,000 sq. ft. segment leading leasing activity, followed by a notable share in more than 5,000 sq. ft. stores. This indicates growing demand for destination and experience-led retail formats.Among categories, apparel dominated leasing activity, followed by hypermarkets/supermarkets and family entertainment centres, underscoring the growing importance of anchor-led and experience-driven retail.
Unit: Average rentals on YOY Basis (INR per sq. ft)
Chennai
Chennai’s retail activity remains relatively skewed towards smaller store formats, with a higher concentration in the sub-2,000 sq. ft. segment. This reflects a preference for compact stores, while larger formats (more than 2,000 sq. ft.) account for a comparatively moderate share of transactions.Among categories, apparel led leasing activity, followed by jewellery & precious stones and electronics, indicating a preference for discretionary and high-value retail categories.
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