We had a faint idea that may Delhi be going through a retail revolution. It’s official now. Those who live near Khan Market in Delhi will gain in status… and if you shop regularly there, be ready to be the cynosure of all eyes. In its annual report on global retail rents, the worldwide real estate consultancy firm Cushman and Wakefield put India at 16th position. Delhi’s very own Khan Market is the most expensive retail destination and it gained the most, moving up eight places from its 24th position last year. Believe it or not, the market ranks above some of the fancied elite shopping destinations, such as Moscow, Beijing, Kuala Lumpur, Amsterdam and Toronto.

The latest news just confirms the notion that the Indian economy and the buying power of the country’s burgeoning middle class are growing at a rapid pace and Indian businesses are responding with their own plans along with global retail giants to penetrate the untapped areas of this fast growing market, thereby creating demand for more retail space.

The huge demand for rental space and the resultant supply gap is the reason for such a steep rise in the rentals of Delhi’s retail markets. Other micro markets in India’s capital city have also kept pace with Khan Market, as retail rents at Greater Kailash, South Extension and Connaught Place have jumped by more than 100%. The hikes in rentals at Mumbai markets were comparatively modest, with Linking Road rental up by 58%.

The trend is in contrast to the Chinese experience, where legislation is less constraining, resulting in more retail outlets and higher growth in total sales. The title of the world’s most expensive shopping destination was retained by New York’s Fifth Avenue. The other toppers in the hallowed list were Hong Kong’s Causeway Bay and Avenue des Champs Elysées in Paris.