Commercial Property Returns: High Rentals Persist Across Major Indian Markets
Commercial property returns: High rentals continue from Khan Market to Karol Bagh, A-grade malls offer stable returns; check Bengaluru, Mumbai, Hyderabad, Chennai trends
The Economic Times
Image: The Economic Times
High-street markets and A-grade malls in cities like Delhi, Bengaluru, and Mumbai continue to see strong rental returns, according to the RELEAP 2026 report by Anarock. Retailers are increasingly opting for high-street locations due to low mall vacancy rates, reflecting a shift in consumer preferences towards experiential retail spaces.
- 01High-street locations are gaining popularity among retailers due to low mall vacancy rates.
- 02Delhi NCR shows strong demand for mid-to-large retail spaces, particularly in apparel and food sectors.
- 03Mumbai's retail market is dominated by smaller store formats, with apparel leading leasing activity.
- 04Bengaluru's retail sector sees a balanced distribution across mid-sized stores, with a focus on apparel.
- 05Chennai's retail activity is skewed towards smaller formats, with apparel and jewelry being the top categories.
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The RELEAP 2026 report by Anarock reveals that high-street markets and A-grade malls in major Indian cities are experiencing strong rental returns. In Delhi NCR, significant leasing activity is noted in mid-to-large store formats, particularly in the apparel and food & beverage sectors. High-street locations like Khan Market and Karol Bagh are seeing notable rental appreciation, with Khan Market's average rental increasing from ₹1,400 in 2022 to ₹1,600 in 2025. In Mumbai, smaller store formats dominate, with apparel leading leasing activity, while Bengaluru's market is characterized by a balanced distribution across mid-sized formats, with apparel again being the leading segment. Chennai's retail landscape remains focused on smaller store formats, with a strong preference for apparel and jewelry. The report indicates that consumer preferences are shifting towards spaces that offer engagement and experiences beyond just products.
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The rising rental prices may lead to increased costs for consumers, particularly in retail goods and services. Businesses may need to adjust their pricing strategies to maintain profitability.
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