According to a survey, Delhi’s Khan Market has emerged as the most expensive retail outlet locality in India, with monthly rentals touching Rs 1,480 a sq ft, in recent times.

While the posh area witnessed high demand from retailers, rental values have seen only a minimal increase of three pc, year-on-year (y-o-y), owing to limited availability and less number of transactions in the market.

At Rs 780 a sq ft a month, Mumbai’s Linking Road is the second most expensive retail location, which is   followed by Connaught Place and South Extension in Delhi.

India is amongst the top global markets to record the highest y-o-y rental hike, the survey showed.

During the first half of 2013, prime lease in most cities remained constant thanks due to the firm demand from retailers, particularly from the fashion houses and food & beverages sectors.

Steady demand from fashion and F&B brands was also the reagent behind rental surge in the country at 2.5 pc.

Most investors, with the exception of a few, are showing limited interest in shopping malls. India’s main streets continue their appeal as new retailers are trying to create brand presence in key main streets markets. Large formats are selectively willing to go for stand-alone or built to suit options as well in India.

In the global ranking, Khan Market stood at 28th position, retaining its position as the most expensive retail location in India.

Meanwhile India dropped in the global ranking from 26th to 28th position due to the weakening of the Indian rupee against the US dollar and largely stable rentals with limited increase in rental values in retailing sectors.